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Technology Stocks : Micron Only Forum

MU 241.14

-6.7%

Dec 12 9:30 AM EST

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To: Michael Bakunin who wrote (47334)	7/28/1999 9:00:00 PM
From: Carl R.	of 53903

No, it doesn't work that way. The only thing that matters is supply and demand. If supply exceeds demand, the price falls. If RDRAM takes off (which I have said I don't think it will), the larger dies will reduce the supply of memory. On the other hand the prices will be 25%-50% higher than SDRAM because of substantially higher production and testing costs, so demand for memory may fall as well. Thus it is possible that a shift to RDRAM would help the memory makers, but it is also possible that it would be neutral. As for high margins, the margins are much higher early on than they are later. This is because supply is less. The only way that you get a Xeon-like pricing situation is if there is only one producer and plenty of demand. This is not the case here. Carl

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