That’s exactly what’s going on. Viewing it from the opposite vantage point- I work for a large US semiconductor capital equipment manufacturer, and projected revenue for next quarter for all sales to Japan have fallen in the last week- not because the customer suddently negotiated a better deal, but because the exchange rate changed. The PO’s are written in Yen, since they’re written through our office in Japan, so currently fluctuations are absorbed by us. Thankfully, a company of this size hedges against currently fluctuations so the impact is minimal, but to the consumer it’s all passed along.
I’d like to warn you that your post has entirely too much logic and actual business applicable thinking written in it.
You should talk more about the “soul” of Shimano being lost or some other irrational argument that has no place on Wall Street or in a discussion about actual business issues…reasonable business thoughts have no place in a thread like this.
Slowman touches on an interesting point on FX…as the dollar weakens - exporters to the US have a harder time making money and US exporters are loving it right now…
I’d like to warn you that your post has entirely too much logic and actual business applicable thinking written in it.
Can I get an Amen!
p.s. I ride on Dura Ace and 650 wheels. Speed = Distance Trained x Hours Ridden----it doesn’t have much to do with Dura Ace or Campy or 700 wheels or Carbon bikes or Aero Handlebars or…
T.C.B.
When the dollar falls, it simply means that it buys fewer Euros (I’ll use the Euro as an example throughout), and the Euro buys more dollars. If a French wine maker wants 10 Euros for a bottle of wine, you could buy that bottle for 10 dollars at an exchange rate of 1 Euro to the dollar. Now that the dollar has fallen, the wine maker still wants 10 Euros for the bottle, but to get the 10 Euros, you first have to cash in 12.50 dollars at the exchange window. The wine maker isn’t charging more for the bottle; just the price to you went up.
Substitute gruppo for bottle of wine and yen for* euro,* and you have our Shimano problem defined.
Just so long as it is not French Wine.