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Technology Stocks : Creative Labs (CREAF)

CREAF 0.470

0.0%

Dec 5 9:30 AM EST

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To: Jeff Lins who wrote (12125)	8/26/1998 9:07:00 PM
From: Savoirman	Read Replies (1) of 13925

By the time the Diamond products ship in October Creative will be ready to drop prices and offer upgraded versions of SB Live (with perhaps more hardware streams and AC-3). Anyway, SB Live is selling for about $160 at some of the on-line sites I see. The margins on this thing are HUGE basically because Creative's been working on this for two years, and as a matter of policy they expense immediately all R&D costs. So all it costs to make the card now is just manufacturing. I estimate gross margins around 70%-80% meaning halving the price will still give 20-30%.

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