Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 230.43

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2:57 PM EST

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To: shane forbes who wrote (30751)	5/31/1999 9:45:00 PM
From: Jack Kunkle	Read Replies (1) of 70976

Shane: Perhaps this is what is in Katherine's data. As more and more functionality is added into one device, consolidating the number of discrete components, the price we would pay for such a device should at most be equivalent to the sum total price of each discrete component assuming the end product performs exactly the same in all respects. I would argue that in the case of system-on-a-chip SOC the incremental benefit to the end user will be exponential and thus the economic price will be substantially lower than a system incorporating several discrete components. Using this argument and real dollars is the price of a Ford today higher that a Model T was in 1927? Still the price trend for a SOC over time is downward. Regards, Jack Kunkle

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