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 : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (3309)	9/26/2002 8:59:51 PM
From: Cary Salsberg	Respond to of 25522

I think the largest single cost item in the phone is the display. The number of chips is less important than chip component of COGS. Most phones are much less than PCs. The new phones are more expensive because of the enhanced screens. I think 1/2 is too large.

To: Lizzie Tudor who wrote (3309)	9/27/2002 7:32:35 AM
From: w0z	Read Replies (2) \| Respond to of 25522

Is there a rough estimate of number of chips required for a handheld device (3G phone from PCS- they are selling those now, or Palm enabled phone)... vs a PC? Half maybe? Probably tracks price reasonably closely...although not exactly because average margins may differ. I would guess a cellphone has 10-20% of the IC real estate that a PC does. Unfortunately this is why the wireless business is not a big driver for companies like AMAT. Microprocessors and RAM are (and probably will continue to be for the forseeable future) the main drivers for the semi-equipment business. RFIC's also do not really require the dense geometries that uP's and RAM require which means they can be manufactured using older generation semi-equipment.