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

To: gnuman who wrote (39209)	4/4/2000 3:53:00 PM
From: Dave B	Read Replies (4) \| Respond to of 93625

Gene, Interesting stuff from the article you posted... Some large computer manufacturers are probably getting substantially better prices, according to Martin Reynolds, Gartner Group research director. "The real Rambus premium is 30 percent," Reynolds asserts, explaining that some vendors may even get RDRAM in volume for only 15-25 percent more than they pay for SDRAM. --------------- Rambus insists the premium isn't as high as the upgrade quotes suggest. In a statement posted on its Web site, the company points to comparably configured Dell Dimension XPS B733r and T700r systems that differ by only $161, and cites the sub-$1450 HP Vectra VL 600 as early proof of RDRAM's migration into low-cost PCs. It says single modules are priced high to discourage sales of RDRAM that could meet more urgent demand in new PCs. "Each RIMM module sold as an 'upgrade' module potentially prevents a PC system shipment while demand exceeds supply," Rambus says. -------------------- What Samsung Says No surprise, though: Prices of early RDRAM modules are high primarily because manufacturers of new technologies want to recoup their development costs. "We spent literally hundreds of millions of dollars developing RDRAM capacity," says Bob Eminian, vice president of marketing at Samsung Semiconductor. Another price hit came from the opportunity cost of converting an assembly line that could have been used to fill SDRAM demand last fall, Eminian says. The seemingly sky-high prices are about four parts Samsung's price, one part retail markup. "Our Rambus components to [PC makers] are about three to four times the cost of PC 100 [SDRAM] memory," he says. Supply won't match demand until late 2001, in Eminian's opinion, and prices won't moderate until competitors get in and PC vendors build more systems with RDRAM to remove performance bottlenecks in systems running at 1.5 GHz or higher. But even then, RDRAM will likely sell for around 35 percent more than comparable SDRAM because of its inherent costs, despite Rambus proponents' claims, Eminian says. ---------------- Good find. Dave

To: gnuman who wrote (39209)	4/5/2000 10:19:00 PM
From: Barry Grossman	Respond to of 93625

Gene, This article reminded me where I got the idea for my answer - from the Rambus website. Barry pcworld.com. html Rambus insists the premium isn't as high as the upgrade quotes suggest. In a statement posted on its Web site, the company points to comparably configured Dell Dimension XPS B733r and T700r systems that differ by only $161, and cites the sub-$1450 HP Vectra VL 600 as early proof of RDRAM's migration into low-cost PCs. It says single modules are priced high to discourage sales of RDRAM that could meet more urgent demand in new PCs. "Each RIMM module sold as an 'upgrade' module potentially prevents a PC system shipment while demand exceeds supply," Rambus says.