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

To: Scumbria who wrote (55572)	9/27/2000 7:50:10 PM
From: Dave B	Read Replies (1) \| Respond to of 93625

Scumbria, This is for you, too. Scumbria's point about the $200 RDRAM is valid, even if his pricing is a bit obscure. There has to be quite a large markup between cost of goods sold and retail in order for a product to pay for all the other stuff. Typical ratios would be around 3 for fairly high volume products. For high end products, the ratios have to go much higher. That is why a $500 Nvidia based graphics card only has about $120 worth of components on it. Two RDRAM chips at about $25 each increases the retail price of the product by about $200. Okay, you guys haven't responded with any pricing links, so I finally realized what a load of BS you were presenting. You can buy an 8-chip RIMM for $219 retail (128MBs of PC600, which would be fine for low-cost systems). That means that each chip translates to $219/8 or $27.38 retail. And even that's really too high, since a RIMM also includes a little bit of PC board and the labor of assembly and testing. But using your formula, Carl, this means the cost to the manufacturer of each chip is $27.84/4 or $6.84, even closer to $2 than it is to $20 or $200. So using your formula, it would cost $6.84 to add 16M of RDRAM to a low-cost system, or $13.69 to add 32M. Actually, I'll bet it's even less than this. You guys aren't even close. Don't bother admitting your mistake -- I'm not expecting you to, and it might quell my disgust at your BS anyway. Dave