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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 93.95-0.3%10:29 AM EST

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To: Joe NYC who wrote (47027)7/11/2000 3:25:00 PM
From: Steve Lee  Read Replies (2) of 93625
 
>>Why would anyone upgrade 820 based system? It is barely 6 months old. A more typical upgrade cycle is 2 to 3 years, even longer....There is nothing wrong with RMBS longs hyping the promise of RDRAM, but I (and surely you) have to laugh at the idiots at whose expense this promise will be realized.

Those buying Rambus based systems are the people who want to buy the fastest systems, the same sort of people who buy the new processor speed grades when they come out. Those people are not involved in the typical upgrade cycle of 2 to 3 years.

You make a valid point about paying the extra for little or no performance increase. I ask myself the same question everytime processor speed goes up by 33MHZ. I mean who would buy a 1Gig PC when a 800MHz is much cheaper and they probably won't notice the performance difference.

The important point is that anybody who has bought a Rambus based system has already decided to pay thru the nose and wants a high performing system. Both of those wishes have been granted to those customers. They have a system that is right up there at the very top of the performance scale, they don't have to overclock anything and they have the option of taking the RIMMS with them to a P4 system in a couple of months.

It has been necessary for Intel/RMBS to push 820 based systems to make a market for RIMMS such that when P4 arrives, there is a stable supply. They wanted caminogate last year rather than tehamagate this year. Customers at the cutting edge of technology expect, and are happy to take the risk of being early adopters.
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