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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (8720)	2/21/2003 11:14:48 PM
From: Return to Sender	Respond to of 95656

Part of consolidation comes from down sizing within the top three companies. MU just let 10% of its work force go this week. The first major layoffs since the 80's. These companies have to stop producing so many chips at such a high cost to them that almost no one is making a profit. As tough as it is to put people out of work it is necessary. Unless a company is capable of maintaining a cash flow positive business there is more internal consolidation necessary. Ultimately it will no longer be an employer at all if it does not cut away the excess expenses. Micron for instance has had many expenses associated with dreams of expanding into markets that the company in my opinion has no chance of being a major profitable player. RtS

To: Gottfried who wrote (8720)	2/22/2003 12:18:57 AM
From: Sarmad Y. Hermiz	Read Replies (2) \| Respond to of 95656

>> Compare to the microprocessor makers - they have little pricing power even though there are just two of them. Gottfried, I disagree. I think Intel (but not AMD) does have pricing power. However, computer demand is elastic. And while they can raise prices, they will sell fewer units. In addition, Intel might be keeping prices low in order to starve AMD; keeping it as a copy-cat, and preventing it from leading in new features. By the way, Intel did succeed in raising flash memory prices. I recently bought a quantity of large flash IDE storage units. There is very little in stock, and prices are approx 30% higher than a couple months ago. It seems like all the retailers are hooked to the same distributor. Hardly anyone carries inventory. I think any increase in end user demand will spark increased capacity utilization. Sarmad