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Politics : Formerly About Applied Materials
AMAT 297.52-6.6%Feb 4 3:59 PM EST
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To: akidron who wrote (17341)3/8/1998 8:22:00 PM
From: Clarksterh  Read Replies (2) of 70976
 
Aki - Thanks for the info about the strategic plans for the STB's. It sounds like you know a lot more about this area than do I. However, since you didn't refute my argument about the initial quick growth, does that mean that you believe that to be the likely scenario? If not, why not?

As for the margins on mobile phone handsets, I agree that the margins for the end sellers are pretty thin, but for many of the components the margins are pretty high, and the upgrade cycle is pretty quick. For instance, Qualcomm makes very large margins on its ASIC's, but very low margins on its handsets. Same for Ericsson and VLSI (which makes the ASICs for Ericsson). And Ericsson transitions handset models at least once per year.

Clark

PS Just for the record, I am cautiously optomistic about the PC market. I think the cause of the Intel fiasco was an inventory correction by the suppliers in combo with competition from AMD and Cyrix and the transition to a different marketing strategy ('You need a computer in every room. One for the kitchen so the homemaker can keep track of her recipes, one for Sissy and Buffy's play room, and one for the man-of-the-house's office.') But in the overall scheme of things I'll admit that I am less sure of this than of most other things we are worrying about on this thread.
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