Comment by zozbot234
19 hours ago
It's not really a blunder though. Given that total capacity is tightly constrained, Samsung and SK Hynix are happy to focus on what they do at their best and with the highest margins. Why shouldn't they supply the HBM market?
It's putting all eggs in one basket. If/when the higher-margin category collapses, they'll have no fallback. Imagine Chevrolet had discontinued Impalas and other low-margin cars, and switched to Corvettes during the pandemic
Even if there's a collapse in the high-margin market (I don't think anyone is expecting this right now), it will be slow and telegraphed in advance, giving them plenty of time to refocus on lower-margin products.
Good description of what actually happened. Do they even sell any conventional 2-door passenger cars besides the Corvette these days?