Producing for inventory is a risky strategy, especially in industries with volatile demand or high risk of product obsolescence because of the pace at which innovation is occurring. For example, the new BlackBerry Z10 smart phone has seen declining sell-through rates and higher levels of inventory and is being sold at deeply discounted prices in the United Kingdom. Concepts in Action: Absorption Costing and the Bankruptcy of U.S. Automakers illustrate the dramatic negative impact of producing for inventory in the auto industry.