Snas, sometimes, I wonder where these people are living? Even if the price wars of the then DRDRAMs cause the prices to be half what current DRAM's are, the total sales of DRAMs will still be in the $30 billion range (and according to our friends at Dataquest, of course $100 Billions in three four years <G>) and RMBS will still make 1.7% of that whether or not the DRAM makers make a penny. Price wars in the memory business and all other applications of DRDRAM's is good for RMBS, this very simply because lower prices means more sales, and RMBS get paid on total sales, not profits!!! How, excuse the expression that I rarely use, dumb, can these people be? I can understand worries about unknown technologies supplanting RDRAMs, but price wars being a problem for RMBS? Hogwash.
What I would agree with is that price war will deflate the PE ratios in the whole industry, but that is not something we did not know, and if you look at MU you should ask, what PE deflation?
Zeev |
