Last year, when cotton prices hit an all-time high due to a global supplycrunch, manufacturers first raised prices, then used less cotton and more blended fabrics such as poly-cotton.
Weaker-than-expected off-peak season demand and a global supplycrunch of HDDs coupled with low demand for PC DRAM chips and the oversupply of mobile DRAM impacted profit margins, in which the memory portion saw its revenue slip to 4.89 trillion won.
Unfortunately, they seem to be a necessary evil in this crazy supply-versus-demand world of capitalism we all call home, particularly in light of the spectrum crunch the FCC keeps warning us about.
The looming capacity crunch of the 1990s was averted not just by slower demand growth, but also dramatically increased supply, in the form of big investments in fibre-optic cable and technical tricks that squeezed more data through the pipes.