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Technology Stocks : Cyrix 1 Where anything goes
CYRX 8.690-0.8%Nov 14 9:30 AM EST

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To: FJB who wrote (26)12/15/1996 4:28:00 PM
From: fuchi   of 640
 
$499 AcerBasic Network Computer Cost Breakdown

Bob, Mark and All:

Sorry for the interruption from my last post on NC. I completed the
burn-in of my new toy: Cyrix 6x86-166Mhz (83*2, not P166+) and spend
some good time with it. As a speed chaser PC hobbyist, I love my new
toy.

Back to NC business, the following repost on my cost breakdown has
been posted on Cyrix several months ago for your reference:

======================================================================
[$499 AcerBasic Network Computer Cost Breakdown]

I tried to figure out if a $499 AcerBasic NC is profitable to Ace or
not. Therefore, I made a brief cost breakdown based on my price
observation from computer shows. Some of these figures might be out
of reality at this moment. But, they could be changed to acceptable
range soon. Any updated figures on ZIP driver and disks are most
welcome!

AcerBasic NC II $499, monitor excluded. 64bit (data) 5GX86-P120+ CPU,
4MB RAM (upgradeable to max. 20MB), including DOS6.22/local language
Windows3.1 and MS Explorer or Nescape 3.0.

Components General Costs MFT. Costs (stricter)
===================== ============= ==========
Motherboard $50 $40
CPU: Cyrix5GX86(P-120+) $85 $75
4MB RAM $27 $20
DOS+Win31+Explorer $28 $20
Computer Case $25 $22
Zip Drive (100~120MB) $85 $65
Zip Disks (3 pcs) $15 $15
Keyboard $10 $10
Assembly Labor $50 $20
Mouse $3 $2
Packing Cost $15 $15
User Manual $0.5 $0.4
Delivery Cost $12 $10
Managing & Overhead Cost $20 $20
Marketing & Advertise $25
------------- -----------
$450.5 $334.4

ACER has claimed that they are not to make good money from AcerBasic
with the view to increased its world market share. Is that right?
Let's look at what the upgrade options:

Upgrade options for AcerBasic II Retails Cost to Acer
================================ ======= ============
256K Pipeline Burst Cache $59.99 $10
4MB RAM $59.99 $20
8MB RAM $109.99 $40
16MB RAM $219.99 $80
Cyrix 5GX86-180 (P180+) $299.95 $150
14" Acer Monitory $269.95 $165
MS Works and Money on Zip Disk $ 99.95 $10
NC Speakers $29.95 $ 8
4X CD ROM $99.95 $35
Applications on zip disks ?
Games on zip disks ?
Service Contract after the 1st year 149.95 ?

Acer would be able to make good profits with the upgrade options for
stores and themselves as it is very easy to design the system using
the propriety components only. Other than these profits, Acer could
have huge advertise income from HOMEPAGE ad (homepage site could
be set as unchangeable).

This analyzation is based on if Acer uses Cyrix 5GX86 CPU to eliminate
fax/modem, video card and audio chip from the system to bring down
the manufacture costs.

However, this is a powerful PC to cruise Internet, play games and
process home office businesses if more RAM and cache are added to
it.

Is the $499 network computer dream too far away? No! With Cyrix's
5GX86 technology, it might be the best selling home appliance in the
next decade for its function and usability. What do you think?

Fuchi ... who loves Cyrix's innovations
======================================================================

Some of the above-mentioned manufacturering costs could be lower today.

Fuchi ... who loves Cyrix's innovations
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