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

To: jim kelley who wrote (42002)	5/11/2000 12:43:00 AM
From: Bilow	Read Replies (1) \| Respond to of 93625

Hi jim kelley; Re RDRAM vs SDRAM problem. No company is an island, and when you hear the bell toll for Intel, it tolls for thee. You guys are all in this together, and will either hang together or, more likely, hang separately. (It's giggles time at the Bilow house.) Let me put it this way. This is not an RDRAM vs SDRAM fight, it is a fight between, on the one side, Intel and Rambus, and on the other side, the rest of the industry. Now the question Rambus share holders should consider is this: Does this development give Intel and Rambus more power over the memory makers, or does it give the memory makers more power over Intel and Rambus? It is pretty clear that the position of Intel has not been improved. If the memory makers were going to wreck the RDRAM coming out party before this disaster, they are going to have much better ammunition to wreck it now. A lot of RDRAM production could end up being placed in machines that customers were not getting ready to replace. The customers that want new machines will be faced with more expensive RDRAM machines, and will be more likely to pick DDR. Incidentally, the cancellation of Camino III was undoubtedly associated with this problem. If Intel had came out with the chip, they would face customers that really weren't very interested in the SDRAM solution. But supplies of RDRAM are going to be even tighter than forecast, and therefore prices for RDRAM are likely to be higher than otherwise. The combination of a bad SDRAM design and an expensive RDRAM design killed the Camino project, and that does not have good long term tidings for Rambus. Celebrate at the sickness of a friend if you must, but don't look too happy, especially if you are totally financially dependent on him. -- Carl