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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: MileHigh who wrote (22844)	6/17/1999 7:55:00 PM
From: Dave B	Read Replies (1) \| Respond to of 93625

MileHigh, It could be good news. According to the Rambus web site, there are 15 vendors listed who are signed up to produce RDRAM (of which 3 were Fujitsu, Hitachi, and Mitsubishi). This may sound strange since we want the price of RDRAM to fall to encourage its acceptance, but we need to remember that if it becomes as commoditized as SDRAM, we could actually see Rambus's revenues shrink if prices fall faster than the market grows (obviously we're talking about 3-5 years out or more). So fewer competitors might help keep the RDRAM prices from collapsing. On the other hand there's probably not much difference between 12 vendors and 15 vendors, though the key ones will be the big 4 you mentioned. Maybe we should start hoping for cartel-like price-fixing <G>? It doesn't actually say that they're not going to be producing RDRAM, just that they "are significantly reducing their exposure to the volatile PC-memory market and will try instead to sell memory into high-end computing, consumer electronics and communications applications." They could still be selling RDRAM into high-end computing, consumer electronics, and communications (all good segments for RDRAM). But I agree that fewer competitors are better (for us, not for memory buyers <G>), once RDRAM has become the standard. Dave