MB - (Business has changed that much for the same reason it changed for Best Buy and the SRAM cos. The debt explosion has led to huge sales of consumer electronics and Xilinx is getting their share of chips in these devices. I think the boom has to fizzle soon, but I am not betting against XLNX until the turndown becomes more visible. After all, the bulls will keep buying until reported eps actually turn down, as they don't understand the debt bubble, so there should be plenty of time to act.)
I don't believe that this is correct. I could easily be wrong, but my impression is that the value of Xilinx's products is the time to market advantage that results from the combination of high complexity and the ability of its products to be programmed and configured very late in the production and development cycle, and relatively easily updated (or replaced in sockets) in the field. Due to their relatively high cost, I would expect them to almost never appear in high volume consumer products, but rather in low and moderate volume, high value infrastructure products, such as switchers and routers.
They will also be used for developmental prototypes of potentially high volume products, with the expectation of being replaced by lower cost, fixed function, high volume alternatives.
Regards, Don |
