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


To: Skeeter Bug who wrote (24421)7/9/1999 2:14:00 PM
From: TigerPaw  Read Replies (1) | Respond to of 93625
 
why don't the pc companies just keep prices flat and rake in all that extra profit?
Industry consolidation. The biggest maker of PCs is still the little mom & pop technology stores which make a few to a few hundred boxes. Dropping prices puts a lot of pressure on these outlets. An explosion in demand for cheap good enough computers does not decrease the demand for high performance machines (only their proportion in total units sold). While the sight of a Rambus equiped machine is not going to make every engineer and graphics designer toss out their old model right away, these machines do get replaced typically on a three year cycle, and they will be replaced with the fastest performing models available.
TP