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THIS DOG “DON’T HUNT” – GIVING UP BUSINESS

August 21, 2013

As reported by various media, Apple will introduce two new iPhones in September, and it is also gearing up production of a new iPad mini. Apple has decided to shift its iPad screen production to Samsung (a chief competitor) from AU Optronics. I  was curious why AU Optronics, the current maker of iPad mini screens, would be willing to give up this business.

“We cannot take orders because our rate of output efficiency is too low to be profitable,” said a manager at AU Optronics. He noted the company doesn’t make a profit from manufacturing current iPad mini screens. You can’t make money with volume when you lose money on every item.

Now, we all know this, but how often do you keep doing something because you simply won’t admit to yourself that it is not working? Ego, it might be the biggest marketing issue many businesses have today.

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