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HP, Compaq, or anyone else cannot make a profit on commodity products.
Indeed, DuPont is committed to lessening its dependency on commodity products and moving towards those that can command a premium, while focusing on growth in each of its five platforms.
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Here several plastics were examined and it was found that silicone tubing was an effective surface that allowed easy harvesting, but it is likely to be too expensive to be used on a very large scale for commodity products.
"The PC numbers look pretty good, but the bad news is you don't want the revenue growth rate to be dependent on the commodity product," said Daniel Kunstler, an analyst with J. P. Morgan.
OZ Mineral, under the control of the Chinese investor, is also required to price the commodity products based on global market conditions and pricing benchmarks, and hold output steady at key mines, subject only to global demand conditions.
"This is great news for overall volumes, but the challenge has now become how to make money on devices that are quickly becoming commodity products.
With these divestitures, IBM shifted away from manufacturing so-called commodity products in order to concentrate on its computer services, software, supercomputer, and scientific research divisions.
Sure, there will be commodity products, like the Koreans', that sell on price.
To keep up with demand for new commodity products, this spring the NYBOT launched futures and options trading on wood pulp and sugar-based ethanol.
Those producing commodity products with no proprietary advantages.
Volumes rose only 3%, reflecting divestitures of some commodity products.
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