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And Then There's Apple, Which Gets People To Pay Extra, So...
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With CES coming next week, The Guardian has this article about the manufacturers' conundrum: It's never been easier to make electronic gadgets, but that means that the prices are rock-bottom and the name-brand companies that employ a lot of people find it hard to make a profit. If pretty much anyone, with the help of cheap exploited labor in the far East, can crank out Fitbit knockoffs or video doorbells and sell them for rock-bottom prices, what incentive is there for a real business to compete? It's, in a way, the Bezos-ing of the world economy; when there are players whose plan doesn't involve making a profit on the goods they sell but focuses on other elements (services, taking a piece of others' transactions, underselling to gain unbeatable market share), how can the companies that make the goods survive, and what does that mean for innovation? (The Guardian)
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