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Technology Stocks : Broadcom (BRCM) -- Ignore unavailable to you. Want to Upgrade?


To: Stoctrash who wrote (6340)8/24/2002 2:37:56 PM
From: ftth  Respond to of 6531
 
re: "Wi-Fi chips that eventually could sell for as little as $5."
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Yeah, it's a pretty interesting commentary on the state of things. Here you have a highly complex device that wasn't even conceivable for any reasonable cost not so many years ago, and was developed by many highly-skilled people over thousands of man-hours, and it will soon be $5 a copy.

Compare that to music CDs, where you have one maybe two songs out of 10 that are any good, that is used for maybe 3-6 months for a few minutes at a time and then mostly collects dust, and was 'designed' by a few high-school drop outs and a cheesy promoter. For some reason this sells for a 200% premium over the WiFi chip, and will still be the same cost if you want to buy it 5 years from now.

Why people continue to pay these excessive monopoly margins for entertainment appetizers with such a short shelf life--while demanding continuously lower prices for things with a much longer-lasting value proposition and % utilization--is a mystery to me. But, you might say that I'm biased.



To: Stoctrash who wrote (6340)8/26/2002 6:18:23 PM
From: Taro  Respond to of 6531
 
at MRVL they expect to move their 2-chip solution in volume below $10 by end of Q4 - at a healthy margin that is. Believe me, this will be a rough race for real men, let´s see if BRCM is up to it

Taro