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

To: Cary Salsberg who wrote (9904)	5/20/2004 2:56:58 PM
From: Sam Citron	Read Replies (2) \| Respond to of 25522

If you were "planning for Intel" you would order as quickly as possible to establish proof of concept, i. e. the first increment, then you would base additional increments on the market's ability to absorb additional output. And if I were planning for AMAT, I would place as high a price as possible on the first increment, to reflect my customer's willingness to pay, as well as to help defray my development costs, risks, and costs of working with Intel to get the new line up and running, and then, once proof of concept were established, offer steep volume discounts to induce the customer to buy as many tools as possible so that we could mutually enjoy the resulting economies of scale, while using forward pricing models to drive demand. <g> Do AMAT and NVLS break out quarterly sales data with enough granularity for an investor to determine what proportion of sales are "first increment"? Sam