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

To: John Walliker who wrote (29137)	9/10/1999 9:41:00 AM
From: Bilow	Respond to of 93625

Hi John Walliker; About the cost of those heat spreaders... I seem to recall them as $1.38 per RIMM, plus $.18 for mounting screws, (quantity 25,000) plus labor. Each one of these is going to increase the retail cost of the 1-RIMM PC by a (traditional) factor of at least four and 4x (1.38 + .18) = $6.24 I know that a couple of bucks here and there don't matter to you high rollers, but the essence of engineering is in cutting costs, while retaining performance. On a $600 PC, this would increase the price by 1%. This is a lot. Presumably a more expensive PC might have more RIMM modules... Dell had a profit margin on sales of about 8%, ttm, according to Yahoo: biz.yahoo.com Having to eat a 1% increase in retail cost would have decreased their profits by something like an eighth, so these 1% cost increases are not trivial things. Sure rambus is supposed to provide better performance. (Though you wouldn't know it looking at the results from the independent testers out there), but every increase in costs of goods sold takes a little bit out of that supposed bang for the buck... -- Carl P.S. We should get together all the known differences in cost between RDRAM and PC100 or PC133 based machines, and then figure out what the change in retail cost will be. By the way, due to excess demand for PC100 chips, I can apparently buy PC133s rated SDRAMs cheaper than the PC100 rated ones. (Prices on Marshall, in small quantities.)