Goldman's Advanced Battery Report: A Contrarian View [View article]
Hi John
Thanks for your response. I understand how the incremental revenues will come about. My concern is that these new batteries (despite being priced higher) will have the same miserable margins traditional batteries have.
Do you see this being a "winner take all" market developing for a time i.e. Xide or another company design and patent a superior battery to cope with start.stop technology and consequently grab a large market share and achieve high margins? Or will competition be similar to the traditional market? Which is more likely?
Goldman's Advanced Battery Report: A Contrarian View [View article]
Dear John
Thanks for all the research you have done. I am a believer of your general thesis. However I have some questions around who will actually benefit from this.
Let’s use Exide for example. They are operating in the industry that from 2015 could have an additional $2billion tailwind in revenues due to start stop motors being implemented. This I rate as a high probability. What I cannot put a high probability on is who will benefit from this.
Will the company who comes up with these new batteries for start stop motors get patent protection and dominate the industry for a period of time before something better comes along? Or will a variety of producers snare their respective market shares - in this case I worry that this industry/XIDE profitability will continue to be awful due to the intense competition, despite the increase in revenues.
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Goldman's Advanced Battery Report: A Contrarian View [View article]
Thanks for your response. I understand how the incremental revenues will come about. My concern is that these new batteries (despite being priced higher) will have the same miserable margins traditional batteries have.
Do you see this being a "winner take all" market developing for a time i.e. Xide or another company design and patent a superior battery to cope with start.stop technology and consequently grab a large market share and achieve high margins? Or will competition be similar to the traditional market? Which is more likely?
regards
Michael
Goldman's Advanced Battery Report: A Contrarian View [View article]
Thanks for all the research you have done. I am a believer of your general thesis. However I have some questions around who will actually benefit from this.
Let’s use Exide for example. They are operating in the industry that from 2015 could have an additional $2billion tailwind in revenues due to start stop motors being implemented. This I rate as a high probability. What I cannot put a high probability on is who will benefit from this.
Will the company who comes up with these new batteries for start stop motors get patent protection and dominate the industry for a period of time before something better comes along? Or will a variety of producers snare their respective market shares - in this case I worry that this industry/XIDE profitability will continue to be awful due to the intense competition, despite the increase in revenues.
Thanks
Michael