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

To: Ali Chen who wrote (79689)	11/9/2001 5:35:04 PM
From: Dave	Read Replies (1) \| Respond to of 93625

Ali, Still, as I stated, Rambus chooses to license their designs. Instead, what Rambus could do is refuse to license anyone. Design their RDRAM and go to a fab, such as TSMC or IBM and fab their DRAM...

To: Ali Chen who wrote (79689)	11/9/2001 5:40:37 PM
From: Dave B	Respond to of 93625

Ali, This is, excuse me, an utter nonsense. To manufacture anything they would need several billion $$$ to build the fab, get thousands employees, all associated infrastructure, priceless years of experience, with all risks associated with making a real product. In the broadest sense, your response is nonsense. Are you familiar with Quantum hard drives (before they were bought by Maxtor)? Assuming you are, are you aware that Quantum didn't actually manufacture anything? Matsushita built all of Quantums drives (may still, for all I know) and Quantum paid them to do so. Quantum simply designed new hard drive technology, then licensed it to a single manufacturer to build with their name on it. There's no difference at all, in this respect, with what they did versus what Rambus could have done. Rambus could have had Matushita or whoever build RDRAM chips and RIMMs and then sold them under the "Rambus" label without Rambus having to "build the fab, get thousands employees,..." and so on. The only real difference is that, since there were other companies that built hard drives as well, Quantum built large sales and marketing organizations to compete. If Rambus had been the only supplier of RIMMs, they wouldn't have needed to build even those organizations. OTOH, if Rambus had built and sold the products all by themselves, then Intel would never have standardized on them. Intel needed competition to drive and drive the prices down on RIMMs as much as possible. And while the prices still aren't in the SDRAM/DDR range, coming down from roughly $1000 for a RIMM to $40 in a year is impressive. Contracting out manufacturing is very common in this business. You'd know that if you actually worked in a real product company. Dave <edit: I see Dave already pointed out the flaw in your thinking, much more concisely than I did. >