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

To: Steve Lee who wrote (63347)	12/26/2000 1:48:36 PM
From: Dan3	Read Replies (1) \| Respond to of 93625

Re: A price war will hurt... Looks like it's Rambus that's getting creamed today. AMD makes money with ASPs of $75 or higher, Intel needs ASPs of $130 to make money. This quarter, Intel loses the cost advantage it has had in the low end and in the high end. The low end as AMD finally gets integrated motherboards (reduces AMD costs by $40!) and the high end where P4 runs only on expensive dual channel motherboards (not to mention the need for expensive rambus). Last quarter, a high end Athlon platform cost about $25 more than the competing Intel platform (Athlon motherboards were more expensive and power supply / cooling requirements added a little to costs. This quarter, a platform for Intel's high end chip is much more expensive since it now has more rigorous cooling requirements and much more expensive motherboards and memory. AMD is used to competing with these cost handicaps, and has been making money while doing it. This quarter, relative costs are reversed. I don't know what's going on with Rambus, today. I see no reason for it to be down so much today, do you know why? Dan