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To: Ausdauer who wrote (4190)	3/16/1999 10:08:00 AM
From: Matt Kaarlela	Read Replies (1) of 4679

You say the RIO is an example of a commodity with razor thin margin? I don't understand your logic on that one. How could a product that is currently only manufactured by one source be commodity? Perhaps you mean it will be a commodity when other manufacturers join in. To that I would understand your view but disagree based on the advantage of time for DIMD to release improved RIO models along with profit benefits from volume manufacturing. Eventually those benefits could be overshadowed by a giant like Sony or Intel but it would take time. On another note, your comments about palmtop computers replacing RIO is interesting. I never thought of using them to play MP3 audio. I guess cost would be the biggest barrier. I always felt RIO was still too expensive for average teenagers to buy. As volume goes up and cost goes down, I expect DIMD to release a future version of RIO for around $129 (priced like Nintindo 64) which would really open up the teenager market. A palmtop that would also act as a RIO would probably be a hit with the upper middle class college crowd but I still think the majority of teenagers would get a lightweight laptop rather than a palmtop for schoolwork and use a RIO for music. All jmho.

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