Prophet,
We are looking at about a 3% cost addition over PC133 for DDR266 once it comes into production.
What usually happens is good technology always chases out bad. The price of production of DDR-133 may be 3% over cost of SDR-133, but SDR-133 price will probably collapse the same way the 12ns SDR from older process SDR eventually did when the 8ns and 7ns came out for PC100 (and 133). Also, if demand of DDR-133 (266) is high, the market will charge whatever rate it can. So you are inherently correct.
However, if the volume production (yield is the determinant) of DDR is similar to SDR, the costs will be comparable between SDR and DDR, while it is not comparable for RDR (as the DDR supporters always like to rub it in).
Also, you dismiss 3% cost increase too easily. That 3% cost increase is HUGE. For a company used to making 30% margin, 3% is a 10% increase in cost. Eg, in the graphics business, often resistors costing < 1c are fought over tooth and nail to bring board costs down. A penny here, a penny there, soon all your margin disappears.
jmho. |
