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Originally Posted by Pierre
Supply and Demand, the basics of business.
There may be reduced margins, but suppliers must be making money out of it otherwise they wouldn't be able to do it.
It's all good for the consumer.
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Sorry but that's not always correct, the company I worked for had very tight margins and made no significant profit in the final 2 years it was open. In the end it's parent company had to close the plant and move the component production abroad because the only way to stay afloat was to cut production costs and the only way to do that was to cut labour costs as the plants were running flat out 24 hours per day 5 days per week.
Forcing suppliers to cut costs is the reason why so much manufacturing has left Britain and moved into Eastern Europe and India/ Asia. Cheaper labour means that they can continue to run at profit while reducing the price per component by the ammount demanded by the company they are supplying.