Josh, You are confusing Net profit with gross profit. And you are also confusing the COST of making a pc with the selling price of said pc, which also includes profit margin for the mfr and the distributor, shipping, advertising, unsold inventory, financing scams, etc. Compaq has long been the net profit margin leader, averaging close to 8 pct. over the years. Dell has been closer to 5 pct. Hewlett and IBM, though they don't break pc profit margins out, are much lower than those two firms. The Japanese producers are closer to 2 pct. My theory is that pressure from Japanese producers will eventually take all the LONG TERM profit margins of the survivors in the industry under 2 pct. But, even before that happens, a 3 pct. hickey to costs, especially when the crap isn't selling that well, will not be viewed as a wonderful development.
And will provide an insurmountable advantage to the boxmakers who produce their own DRAM, which includes MUEI.
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