To All, 1. 16 Mbit DRAM prices break the buck. All the chips on The Achilles Site today are priced at $4.80. That is low. NOBODY makes money at $4.80. Of course, contracts may be slightly higher priced. Temporarily. This isn't a big problem for the Koreans and Japanese, who have switched mightily to 64 Mbit production. But it is a major problem for the Taiwanese and Micron Tech. Of course, 64 Mbit prices are no day at the beach, either. But with .25 um lines cranking up at Samsung and IBM/Toshiba, those folks are going to have to kick out a gazillion chips to pay for their investment. Longer term, everyone in the business getting their head handed to them on a platter is probably not great for the bloated fluffy chip equipment stocks. Look for frantic moves, anti-dumping crapola, shutdowns or slowdowns of 16 Mbit lines, etc. Look for it not to work. MU be dead meat fundamentally. Still over $40 because the herd is kinda slow-witted.
2. Gateway is moving into workstations and servers. Oh, yeah, no good companies there. -g- If you can't compete in a market where major market share is still held by Apple, Packard-Bell, and other brain dead firms, how do you go head to head in a market where the names are Compaq, Hewlett-Packard, Dell, IBM, Sun, and Silicon Graphics? Oh, yeah, good move GTW. Money thrown in a hole. Money they don't have, thrown in a hole. Dead meat Part two. -g- MB |
