IDTI - an IC Play on Growth Markets Message Board

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Technology Stocks : IDTI - an IC Play on Growth Markets

IDTI 48.99

0.0%

Mar 29 5:00 PM EST

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To: Baoho Chang who wrote (7299)	3/10/1998 12:03:00 PM
From: Rob S.	Read Replies (2) of 11555

The wholesale price has been said to be around $70 in 1000 piece qty. The $89 price seems a bit low but reasonable. Here's some guesswork on costs & pricing: I think that by the end of the year that C6 225s will sell for around $70-$90 retail and C6 200s will, if they are still in production, sell for around $50-$60. Even with the 0.25 um shrink, uPs can't go too much lower than $50 because of the cost of building and marketing the parts, including the costs of packaging and testing. For a socket 7 package, the packaging & testing cost must be at least $20 ($12-14/package + >$6 labor and mfg. overhead) even with the recent devaluation in Asian currencies. The C6 die may cost around $10-$25 dollars by the end of the year, depending on how you figure amortorization of fixed costs. At a $40 wholesale price there wouldn't be much luxury room for pay-back on long-term investment or funding of new initiatives. If the market becomes this agressive, IDTI will be about the only one able to make a profit or will have the low-end of the market to themselves.

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