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

To: Don Green who wrote (25526)	7/22/1999 9:51:00 PM
From: Dave B	Read Replies (1) \| Respond to of 93625

Don, I have no doubts that those users who always need to have the fastest machine FIRST will spend the extra bucks, but that number won't be THAT large in relative terms...and will limit sales for a long time. We've seen an article today that says that RDRAM costs 20 to 30 percent more to make than SDRAM, but will cost at least double, maybe more. With that kind of premium built in, there will be a tremendous incentive for the DRAM mfrs. to build up RDRAM quickly -- they're always looking for profits (aren't we all!). That production will result in competition, which will bring the price down. Personally, I believe that will actually happen rather quickly, but that's certainly the basis for the arguments we've had lately. If the DRAM mfrs. all try to grab a piece of the RDRAM profits quickly, then the price will tumble (game theory - they'll take reduced profits rather than have it sitting in warehouses) and the premium will end up not being that great. The hard drive and memory businesses have a history of overbuilding capacity and I don't see anything changing in the future. I agree there is no room for a major misstep. We've had 2 so far -- the Camino slip (which always happens in technology products) and the crashing SDRAM prices, which have made the premium much larger than anticipated. The first was Intel's fault, the second was just one of those market conditions that "happens". We'll have to see what happens next. Dave

To: Don Green who wrote (25526)	7/23/1999 4:36:00 AM
From: unclewest	Respond to of 93625

don, what is your take on this from 6/27/99? seems acer wants rdram in low-end this year 1999. did you know this? unclewest Acer Will Support Rambus For Consumer PCs TechWeb - Acer Laboratories, in Taipei, Taiwan, announced Tuesday that it has licensed 800-MHz memory-interface technology from Rambus. The company said this will make the higher speeds of Rambus -- 1.6 gigabytes per second of peak bandwidth from a single device -- available to more-affordable PCs. "With Rambus memory support, the consumer PC owner will enjoy ample performance for CPU-intensive, video, and 3-D graphics programs and games," said Chin Wu, president of Acer Laboratories. "Rambus technology is a key element in our new products and will be a primary interface to DRAM for PC main-memory controllers for 1999 and beyond." Acer Laboratories plans to introduce a new generation of PC chip sets with Rambus memory support this year. "ALI's record of being able to quickly ramp leading-edge PC chip sets in high volume will help accelerate the proliferation of the Rambus memory throughout the entire PC market," said Dave Mooring, vice president and general manager of the PC Product Division of Rambus, in Mountain View, Calif.