They didn't always.

Digital Image Studio wrote:
> On 23/05/07, P. J. Alling <[EMAIL PROTECTED]> wrote:
>   
>> It's balancing act, if you don't look at it in a vacuum.
>>
>> Lower costs/Lower Profit per unit. -> Lower unit prices -> Higher demand
>> -> Higher volume -> Higher overall profits
>>
>> Of course this assumes you can meet the demand.
>>
>> Japanese companies have in the past valued market penetration over
>> higher profits.  That's why Canon will "give" away High cost equipment
>> to gain market share.  Smaller companies have to have lower profit
>> margins to get the same effect, which of course leads to lower marginal
>> profits.  As long as marginal profits aren't negative Pentax thought
>> they were doing well.  That was a more or less traditional view.
>>     
>
> All well and good but the two top players manage to combine high
> volume and high profit per unit.
>
>   


-- 
All dogs have four legs; my cat has four legs. Therefore, my cat is a dog.


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