AM have a limited number of devices for sale. Previously they could charge 50 BTC per device. Soon they will only be able to charge 2 BTC per device. In order for profits to remain the same, AM would have to sell 25x more devices at the lower price. It can't do that though because those extra devices are needed for its mining operation. The obvious conclusion (and it is blatantly obvious if you just open your eyes and look at the situation objectively) is that income from selling hardware decreases.
Same mistake here ,again and over again. You assumption is based on AM will selling same Blade all the time, and based on this assumption you assume the share price of AM will decrease.
NO! It makes no difference what hardware AM have for sale in the future. If it offers poor value compared to the competition, people will buy from the competition. It it does offer equal or better value than the competition, then income from hardware sales MUST decrease due to AM having a limited quantity for sale.
Let's me explain clear to you , KNC will probably ship its product by September ,before that time did you agree that AM still has no comparative competitor in the market? other things ,AM is focus on mining ,the majority of dividend is coming from mining. Since last week, the dividend come from hardware selling is already drooped. why its share price goes up? the reason is AM still the best assets produce positive value, so investors has no other opportunity, as long as there are no other assets could produce a annul yield above 20% without loss its principle.
Until people can buy miners off the shelf (order gets shipped within a couple of days of being placed), AM will have no competition. Why has the share price gone up? Clearly because people are stupid.
We should be clearly understand AM is not rely on Hardware sales as well as mining.
The correct assumption should be if AM loss its capability to remains its share in mining , then I agreed its price will be dump so quickly,
AM will not be able to to maintain it's stated share of the hash rate either. It can do so now only because of the lack of competition. The following companies already have or are due to have ASICs on the market.
ASICMINER
Avalon
BFL
KnC
BitFury
Bitgarden
AMC
All of those companies could easily match each others hash rate once they have a working ASIC and we're bound to see a few more in the future. I believe we'll see AM settle at around 10-15% of the network share.