Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 115.18

-7.7%

Jan 23 9:30 AM EST

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To: MileHigh who wrote (4587)	6/12/1998 10:07:00 PM
From: Thomas P. Friend	Read Replies (1) of 93625

MileHigh, The problem is not the $1.70 for superior performance. The problem is that if DRAM is $25 for 32MB and DRDRAM is $100 for 32MB, that is $75 that the customer will have to pay, in addition to the premium for the processor, and the premium for the motherboard chipset. Factored together, they may add 25-30% (or more) to the system price that the buyer will have to pay, and THAT is what is damaging. And if Rambus DRAM must be much cheaper to compete, then the royalty goes way down. Also damaging. And for at least the fifth time, I'm NOT betting against the technology, software, etc. getting faster and more complex. I AM CERTAIN THAT THEY WILL. What I am saying is that the hardware is getting too cheap for Rambus to collect huge amounts of money from royalties on it. In today's typical system, there is $25 worth of system RAM. 2% of $25 is $.50. That is what Rambus is competing with. Does that help you to understand what I'm driving at? If not, I'll try again. Tom

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