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Technology Stocks : C-Cube
CUBE 37.27+0.5%10:32 AM EST
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To: DiViT who wrote (25990)12/2/1997 8:28:00 PM
From: Dan Spillane   of 50808
 
David, price cuts always occurr in high tech. The question is, where is the balance between supply, demand, and margins. Take PCs for example....Dell and Intel are doing quite well and consider cuts of 20-40% quite normal.

You can't automatically assume CUBE isn't making money when VCD players cost less in China. It's possible ASP's for CUBE chips come down over time, but at the same time production costs may go down, and unit-volumes may go up.

(re: your China story)
Dan
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