Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Rob S. who wrote (37179)	4/24/2001 10:51:00 AM
From: Bill Jackson	Read Replies (1) \| Respond to of 275872

Rob, yes, and the practice of shipping now and getting paid a lot later and all the surplus gear out there. I expect the assorted segments will have longer/shorter feedback loops. I do not see the Ciscos of the world as consuming huge volumes in parts as they are quite small compared to the human sea that buys PCs, radios, TVs, cellphones etc. Each Cosco router is far more valuable than a PC, but the bulk of the value is premium value for software and other aspects that flow from it's market uniqueness. Cisco might make huge margins as well. $1 million in Cisco gear might use $50,000-100,000 in semis as there is huge value added in Cisco stuff. 1 million in PC gear will use $500-600,000 in semis (just a rough estimate) PCs are close to raw material cost now and so an upsurge in them translates to fab use directly. By Value added, like Xeons, similar to P-III but more value added=extra markup. Bill