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Technology Stocks : Neomagic Corp. (NMGC)
NMGC 0.00730+1.4%Nov 7 9:54 AM EST
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To: Mani1 who wrote (3021)5/21/1999 1:14:00 AM
From: Eddie Kim  Read Replies (1) of 3645
 
okay so this is the situation:

1) 3D 256 Chips ready to go, but can not be mass produced.

2) LCD screens are the Limiting factor. Computer companies have decided to make high-end labtops with these LCD to maximize profits.

3) The two factors above result in a shortage of 256AV chips for Neo. In fact they are 300,000 to 500,000 chips short.

4) Neo will buy more "chips" at retail; thus lowering margins.

5) DVD and digital camera poducts have received good reviews.

Question: IF the 256AV chips are in such demand, why can't Neo raise prices?
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