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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 94.23-11.1%Dec 12 9:30 AM EST
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To: Steve Lee who wrote (47029)7/11/2000 3:42:13 PM
From: Joe NYC  Read Replies (2) of 93625
 
Steve,

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.

I had this discussion with Tench a while ago. There are enthusiasts that want the best (fastest) system at a given price. Let's say the best $2,000 system, $3,000 etc. Once you establish the budget, you have to come up with components using the price performance ratio of the components.

Since RDRAM vs. SDRAM has the worst price performance ratio of any other component, anybody thinking rationally will undertake that upgrade as the last thing. Even upgrade from the second fastest processor to the fastest processor has a better price/performance than RDRAM vs. SDRAM, you would not be acting rationally if you bought RDRAM in any system with less than 1 GHz CPU.

Joe
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