Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 318.24

-2.7%

3:59 PM EST

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To: Proud_Infidel who wrote (20716)	6/24/1998 3:00:00 PM
From: Teri Skogerboe	Read Replies (2) of 70976

Brian, Everybody and their dog is fully aware that the prices of these chips normally trend lower. And, that wasn't the point. The point was that if the so-called "shortage" of Pentium II 233 and 400 was real, the price would normally spike upwards. The supply and demand thing (Econ 101). An example, on the rare occasions where oil has been perceived to be in short supply, the price of oil spikes northward in a major way. The fact that the pricing does not reflect a shortage condition is one of many reasons for me to question the report. Accepting the news reports without checking them against the realities that we pretty much know to exist in the industry right now does not make good sense to me. A sucker's rally, IMO.

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