Comment by LarsDu88
8 hours ago
It's not a matter of maintaining prices. It's what will happen when a winner emerges and the winner naturally raises prices.
8 hours ago
It's not a matter of maintaining prices. It's what will happen when a winner emerges and the winner naturally raises prices.
is this what happens in China's market? because my understanding is that China loves having an array of competitors. their entire strategy is just to 'build the stage' (via infra buildouts, workforce training, etc) for private enterprises to capitalize on which means rich fields for everyone. and the more that compete, the better it is for their economy. it's why there's something like six large smartphone makers all competing with one another (not counting the myriad smaller makers that exist) - how many large smartphone makers exist in the US?
But the companies are not profitable; their losses are being covered by the Chinese state. The question is whether this is actually an effective strategy long term.