Friday, 15 February 2019

Great, But







The world's biggest passenger jet was confirmed to be grounded, after producing the pre-ordered 17 jets (14 for Emirates and 3 for ANA), the production line will be closed. To build such a massive passenger jet is a great achievement, it is such a pity for ground such incredible project. Moreover, there are other examples that good projects were abandoned. For example, the supersonic passenger jet, Concorde, was grounded. In addition, although the US has developed its latest fighter, F-35, F-22 which was developed during the Cold War period is still considered to be the best fighter at the moment, but F-22 has stopped production for decades already.

Why are these amazing products grouded? The reason is simple that the cost is too high. Providing additional high technology involves an increasing marginal costs, which means producing a product with one higher technology is much more costly than producing an ordinary product without the high technology. Therefore, even some products having the most advanced technology attracts much media and public attention, they do not meet an accpetable sales target that is able to make possible. Moreover, for the demand side, these high-tech functions seem amazing and fancy, but the reliability has not been proved, also the environment might not have been able to catch up with the latest technology, such as the USB-C port in the PC industry.

Overall, latest technologies seem fancy but because of the environment as well as the marginal cost of providing higher technology, the products with the latest technology are not really desirable in the market.

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