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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology -- Ignore unavailable to you. Want to Upgrade?

To: Pamela Murray who wrote (11854)	3/28/2000 11:28:00 PM
From: Jon Tara	Respond to of 18366

Pamela, chips require significant capital equipment expenditures that are not required for software. A $200,000/yr (cost) programmer requires a computer that costs at most $5000. Further, the engineering cost of chips is significantly higher than for most software. Finally, chips quickly become obsolete, and new ones then need to be designed. Good software (or good software components, at least) have many years more lifetime than chips. In short, you simply cannot compare chips with software. Nobody has any business making chips who doesn't specialize in it. BTW, IBM does make their own chips.