@ Hailey - I agree. I suppose at times it is unavoidable, in cases where the new and old technologies are completely incompatible. Other times, it seems like more of a business decision or strategy to force consumers into the next technology kicking and screaming!
@Eldredge, I find it disheartening when technology upgrades include the lack of support for older technologies. It forces people to upgrade or go without--and, although EBN is a haven for technophiles, it means that if you can't afford the newer item, you are out of luck. Televisions are in this category largely--and buying something new (say a Tivo or DVD player) becomes impossible if you have an old TV--there's no way to connect it. THe price sensitive nature of these products means that the OEMs are reulctant to add these old interfaces just ot help out the people who haven't upgraded. It's understandable but unfortuneate.
"if you buy high and get stuck with inventory it can cost you if prices drop (and end product prices erode accordingly)."
Very true. What I would do, if it were a high-volume sales operation, is average down the cost of the glass stock with new purchases when glass prices drop, and allocate the average cost against each product. The result would be the maintenance of a profit, if sales prices don't drop even more than the drop in glass stock, and, because it is a true average, it would reflect the true economic situation, as well.
In fact, if I were to charge the exact price of the glass stock from when it was purchased to each product as it was being produced with that glass, I would get a wildly swinging profit on each product that I would have to average out anyway at the end of the quarter, so same result.
@Rich, let me start by saying i'm no accountant, but it would seem to me that one of hte biggest problems of carrying stock in any consumer product situation is that the cost of the materials can shift pretty dramatically. In terms of glass, there was a big shortage in 2010 or thereabouts which made it hard to get and expensive. Everyone scrambled to increase capacity and with more supply prices dropped. What i'm getting at is this: if you buy high and get stuck with inventory it can cost you if prices drop (and end product prices erode accordingly).
@t.alex, i"ve heard that some people have this type of motion sickness problem with 3D TV. The other piece of the puzzle for me is the need for 3D glasses. My neighbors got a 3D TV and they had two pairs of glasses--which meant that the whole family couldn't watch TV together if it was in 3D, nevermind inviting friends to sit down and watch. Further, there's a lot of confusion in the marketplace about the various approaches to 3D. I worked for a projector company in the not too distant past, in the marketing department, and spent a lot of time creating materials around explaining the benefits of active (read battery powered) glasses over the type you get at the movies, for example. This type of education takes a lot of time and effort and has to go through the entire supply chain--from the manufacturer to the distributor (how to sell it) to the retailer (again how to sell it, and how to demonstrate it) to the end consumer (why to buy it). The cool factor wasn't enough to overcome this issue.
Isn't the glass stock, if bought in too great an amount, just something that can be stored without deterioration or technical obsolescence? And, in most accounting systems, it would not count as an expense until actually used. In the meantime it would sit on the balance sheet as an asset. Therefore, buying a little too much shouldn't affect profits, except for small carrying and storage costs. It might depress some efficiency ratios slightly (depending on the size of the company), such as asset turnover, but otherwise, maybe not such a big deal? Or am I missing something?
@t.alex: "The 3D display market is set to grow from 50.8 million units and $13.2 billion in revenue in 2011 to 226 million units and $67 billion in revenue in 2019 worldwide, according to the NPD DisplaySearch 3D Display Technology and Market Forecast Report.
I do think that 3D didn't do what everything thought. A lot of moving parts had to come together to make it work, including 3D channels, programming and media; the right hardware; customer awareness; price points. It's really tricky. The above may be optimistic.
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