How do the market structure and demand of the business market for microprocessor chips differ from those final

Question

How do the market structure and demand of the business market for microprocessor chips differ from those final consumer market?

Answer 1

It should not be too difficult for you to work this out yourself ..

Say you are Dell and expect to sell 200,000 PC's in the run-up to Christmas .. and have just heard that Intel / AMD are bringing out a new chip in November ..

Now think about yourself as an individual buying one PC for Christmas ... and have just heard that Intel / AMD are bringing out a new chip in November ..

Consider the following :-

Your & Dell's need for 'latest & greatest' chips

Your & Dell's commitments to buy existing chips

Risk of late delivery (and what effect that might have on Dell's sales or your purchase)

Your & Dell's Payment terms

etc.