Chinese Company Trying To Play With The Big Boys

NA HQ in your old neck of the woods no less, @manch

Many Chinese firms are setting up shops in the Valley. Huawei has a campus right next to Nvidia in Santa Clara. Baidu has a big ML team in PA headed by that famous Stanford prof Ng. Alibaba also has a sizable team in San Mateo.

Did not know Vizio is an American company. Always thought it’s some sort of cheapo Chinese players…

Actually their higher end (if you can call it that) larger 75" and 80" 4K tvs are decently reviewed and are farily cheap for the price. I may consider buying one instead of paying probably close to $10K for a comparable Sony or LG one that probably is still not made in Japan anymore. Electronics, appliances and even cars are just not made as well as the good old days.

Vizio is a US company, started by a Chinese (at least co-founded).

TCL and HISense are Chinese companies and you can buy their TVs in Costco, and both have long histories in China. I recently bought a TCL TV and am pretty happy about it.

I need to read up on Vizio. Sounds like an interesting story.

Yeah, unfortunately I believe both those companies don’t make any tvs bigger than 65" or I would consider them too if I can get them here. I don’t understand why the pricing jumps up exponentially from your normal 60-65" to 80" and above. I believe it has something to do with the manufacturing of such large screens (that not everyone can do it easily) but still it shouldn’t be so drastic of a jump. I would prefer a 90" tv (and Sharp makes one but it is already old tech). A 100" Sony 4k tv I believe was just announced but I think it is like $50-60K for it. Uh, wifey will not sign off on that…

I think this is somewhat similar to die sizes for computer chips (I am in semiconductor). The bigger the die size is, not only is it more expensive to make (fewer dies per wafer), the yield (good die ratio out of all the dies you get from wafer) also drops dramatically because it’s more likely for some part of the die to become fatally defective to cause you to throw away the entire die. Large screen manufacturing likely follows the same principles.

Another reason is the more expensive a product is, the higher the expected margin becomes. Customers for these products are relatively less sensitive to a higher margin than lower-priced items. For the 90" to 100" size range tvs, this is more likely the reason you see $50-60k price tags. :slight_smile:

Well, I beg to differ on the cars. Today’s cars run circles around the cars of old. I guess you just had to be there.

@tomhVallejo,

I don’t know about that. Today’s cars obviously have more bells and whistles of course but they are shoddy made. My wife’s fairly new Honda already has severe paint issues, which I learned is common for newer Hondas. I mean, that is unheard of, especially back in the day. I have heard of people needing to change trannies on a Toyota or Honda when these things used to be absolutely bulletproof too. I should know, I have a collectible, clean Honda CRX Si that is over 25 years old that people constantly ask if it is for sale. Are you crazy? I get more gas mileage than most new cars. Where’s the progress in 25+ years, @tomhVallejo?

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Snobbish goods - More expensive more demand. Don’t work for other goods.

So thrifty? Should be at least Acura or Lexus (Toyota’s version). I was expecting your wife to drive Porsche boxster or better.

Yeah, I know, and I have told her to go and buy something nice to drive. She probably saw how my “experiment” with driving a SL convertible for awhile went. Not good. Everything about it was expensive and it was only a weekend driver. She will have her routine $300 haircuts/styling done, but that is about it. Why splurge when hubby takes care of everything…:sob:

In that case, your wife is a gem. :slight_smile:

High end goods do not guarantee a profit or long term success.

http://www.futurmall.com/is-norsdstrom-in-trouble/

Sometimes there are large margins on cheaper goods. I worked in a distribution company who’s mainline was costume jewelry. The mark up was off the charts. The gross margins almost ten times what most retail is.

I realize I misread maluka comment, your response is the right response to his comment.

Thank you, @tomhVallejo! Had we only met sooner and had babies to then be able to join in on the discussion here about good/bad school districts!!! Such is life and the hand that we were dealt with…

@maluka,

Good, sound assessment. I just feel that too often we see this kind of practice (meaning pricing strategy/disparity) where ultimately the manufacturer doesn’t really benefit from it in that there are relatively few sales at all. I am always thinking I would rather take a bit more volume sales (lower price then) as opposed to just the one-off sale. And I don’t mean that the manufacturer should take it way down to break-even but surely there is a lot of fat in the margin that they could moderate it some. Come on, if everyone started seeing these nice massive tvs in their buddies’ or family members’ homes, they may want it too so you will get spin off sales. Not selling or seeing very few units out there at the get-go pretty much dooms the product, I think.

Econ 1a

widgets are produced where marginal cost = marginal revenue

Econ 1b

profits only exist in the short term due to Econ 1a. In the long term, profts = $0