Product binning

Product binning

Product binning is the categorizing of finished products based on their characteristics. Binning allows differing quality products to be priced appropriately for various uses and markets. Product binning and grading allows a degree of price discrimination which may be easier to defend legally, since it can be based on real or perceived differences in product quality.

About Product binning in brief

Summary Product binningProduct binning is the categorizing of finished products based on their characteristics. Any mining, harvesting, or manufacturing process will yield products spanning a range of quality and desirability in the marketplace. Binning allows differing quality products to be priced appropriately for various uses and markets. Product binning and grading allows a degree of price discrimination which may be easier to defend legally, since it can be based on real or perceived differences in product quality.

In 2020, when Apple launched their new Apple Silicon M1 chip, they offered parts with 8 GPU cores as well as 7 GPU cores. This practice occurs throughout the semiconductor industry on products such as CPUs, RAM, and GPUs. It is possible to salvage part of a failed batch of integrated circuits by modifying performance characteristics. For example, by reducing the clock frequency or disabling non-critical parts that are defective, the parts can be sold at lower price.