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To: LLCF who wrote (177164)	7/2/2002 10:49:23 PM
From: Roads End	Read Replies (1) \| Respond to of 436258

Thar stuff is cool but buy it to use it not to invest in it. Message 17687002 A chilling view of the electronic component wireless sector from the inside. I went to visit a company that makes crystal oscillators for the wireless industry. In March 2000, they had 700 people making these components in 3 plants for the miliary and many wireless base station customers like MOT and other OEMs. At the beginning of the year 2002, they had 400 people making these products. Today only 24. Apparently MOT and others are still stuck with massive inventory and slow demand. This company is basically moving all technical equipment to their plant in China. They had paid workers $8-10 and hour for the oscillator assembly. In China the minimum wage is 83 cents an hour. China is avoiding a recession and will lower the wage even lower to an undetermined amount. An oscillator is a quartz crystal made of silicon dioxide coated with gold or chrome. It is then packed in a silver epoxy resin mix and encased in metal with leads. The one I looked at cost $20 and was 100% qc tested. It has an expected life of 10 years with no diminishment of quality. Thermodynamics is the largest crystal supplier in the US. Apparently the low quality oscillators can be bought for 45 cents so OEMs are starting to use them in several products. The outcome of this seems to forsake quality for price. Perhaps disposal cell phones is the next item. Buy a $10 phone with 500 minutes already programmed in it. We discussed the future of wireless internet adoption among the companies. Apparently the consensus is 3-4 years out.