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To: Michael Bakunin who wrote (47334)	7/28/1999 3:19:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 53903

>>I think the rational bull case here is that if RDRAM takes over, the memory makers will have a high-margin product at last (viz Intel's Xeon). -mb<< mb, they've said that about every new technology. if the dram guys have a high margin product then either the boxmakers or consumer is going to foot the bill. the consumer won't do it. the boxmakers would have to be dumb to want a product that will transfer their wealth to dram mfrs.

To: Michael Bakunin who wrote (47334)	7/28/1999 9:00:00 PM
From: Carl R.	Respond to of 53903

No, it doesn't work that way. The only thing that matters is supply and demand. If supply exceeds demand, the price falls. If RDRAM takes off (which I have said I don't think it will), the larger dies will reduce the supply of memory. On the other hand the prices will be 25%-50% higher than SDRAM because of substantially higher production and testing costs, so demand for memory may fall as well. Thus it is possible that a shift to RDRAM would help the memory makers, but it is also possible that it would be neutral. As for high margins, the margins are much higher early on than they are later. This is because supply is less. The only way that you get a Xeon-like pricing situation is if there is only one producer and plenty of demand. This is not the case here. Carl