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Technology Stocks : Intel Corporation (INTC)
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To: dougjn who wrote (58468)6/22/1998 6:14:00 PM
From: Steve Porter  Read Replies (2) of 186894
 
All:

RE RDRAM and Margins, etc.

If there is a steep price difference between RDRAM and non-RDRAM solutions consumers won't go for it, it doesn't matter how fast it is.. why? Becuase the are used to the idea of free RAM now.. (I mean hell at the current prices it is).

Let me put it another way. 1 Gig of slow ram (i.e. SDRAM) will serve me much better in my big web server than 256Megs of fast RDRAM. If the costs are the same for the both of them, which one do you think a corporation will go for. I'm betting on the legacy stuff.

Ofcourse all of this is me just trying to prove the point that the consumer won't ALLOW ram margins back up, regardless of what kind of ram it is. It would be like you trying to charge $2,000 for a cheap VCR again. Once you spoil the consumer with low prices they won't go back.

Steve

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