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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (44532)	3/26/2001 8:51:27 AM
From: Katherine Derbyshire	Respond to of 70976

Yes, your analysis of individual chip spot prices vs. ASPs for all chips is correct. To use spot pricing (which has the advantage of being readily available) as a proxy for ASP, you would have to calculate an average spot price for all chips in the spot market, weighted by quantity of chips available, and would have to add new chips to your average as they were introduced. All of which is a fairly involved calculation that would leave you with an indicator of dubious utility (because the spot market is a small fraction of the whole). Which is probably why no one has done it already. A true ASP calculation would simply divide total chip revenue by total unit volume. Easy to do, if you can get the revenue and volume numbers in a timely fashion. Katherine