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To: Mitchell Ryan who wrote (1335)1/23/1998 8:51:00 PM
From: Sleeperz  Read Replies (1) of 16960
 
SGA, R+D and manufacturing costs are more or less fixed by the company. To cover these costs company Z has to sell X number of Voodoo boards to break even. Then anything over X is Y+X and is profit. If there is a shortage of chips then company Z might not get enough chips to make enough boards and the result is Revenues don't cover the expenses or its just enough to eak out a profit but not enough to build up the company. Don't forget there are about a dozen companies fighting for the Voodoo chips and market share.

cl

>>>I don't understand what you're implying here. How are profit margins for Micronics Righteous Voodoo boards affected by chip shortages? Seems to me that the shortage of Voodoo chips has enabled all of the board vendors to maintain very healthy ASPs, since end-user sales have been robust.<<<
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