Samsung can increase its prices until they can’t sell all of their output, or they decrease their prices until there are shortages. Anywhere in between is just about allocating the surplus value to Samsung shareholders, executives and workforce or to consumers. If the chips are selling when Samsung is asking 40x profit then the chips are even more valuable than the price they’re charging.
Fun fact:
The chip division's profit margin is so high they are now refusing to manufacture the next Exynos chip.
(Pre-emptive comment: I actually like Exynos and prefer it to Snapdragon)
This could mean 40 years of negative earnings, near zero profits, low level profits, normal profits or high margin profits.
In reality it is a mixture of everything.
Does this mean the AI will get cheap as soon as Samsung no longer makes 40x profit?
Samsung can increase its prices until they can’t sell all of their output, or they decrease their prices until there are shortages. Anywhere in between is just about allocating the surplus value to Samsung shareholders, executives and workforce or to consumers. If the chips are selling when Samsung is asking 40x profit then the chips are even more valuable than the price they’re charging.
I'm not sure if anyone wants Bixby, even if it's cheap
Would they show some mercy to us hardware peasants?