Rambus (RMBS) - Eagle or Penguin Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 94.22

-1.4%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: CoffeePot who wrote (38147)	3/15/2000 8:18:00 AM
From: Zeev Hed	Read Replies (2) of 93625

Stockalysis, the date of that "report" is 10/14/99, since then Samsung has already decided to increase their production rates to 10 MM units per month, and four additional DRAM manufacturer have gone through the qualification process (some are shipping, like Toshiba and NEC, Infineon should start shipping any month now). My advice to you is "don't look at what people say, look at what they do", by their action these DRAM manufacturers surely are addressing a little more than .1% of the market by 2004. The fact that RDRAM is currently going at such a high premium is simply due to demand exceeding supply. An old but well tested principle in economics. The intrinsic mass production cost differential is no more than 15%, that is why Samsung is going to do fabulously, charging anywhere from 50% to 200% more for RMBS while their intrinsic "charge up" is in the 15% to 30%. RMBS is simply more profitable for them as long as MU is staying out of it. Once MU and Hyunday finally get into the fray, the manufacturers' margin may thin to non existent, but guess what, RMBS is still going to make their 1.5% plus royalties. Good luck to you. Zeev

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next