To: Ausdauer who wrote (27869 ) 4/10/2005 11:25:51 AM From: Sam Citron Read Replies (1) | Respond to of 60323 extravagance without breaking the bank We can all agree on one thing: Moore's law is certainly the gift that keeps on giving. When hooked up to optics and software like new compressions standards, it sometimes seems like Moore's Law on steroids. One of the unintended benefits of optoelectronics was, of course, the entry of India and other emerging nations into the world's supply chain. This revolution would not have been possible without the world becoming "flat", in Thomas Friedman's terminology Message 21213021 , i.e., telecom costs approaching zero. The very point of Moore's Law is that as costs and prices are driven asymptotically toward zero, it ushers in a range of new and unexpected applications to sop up the sudden plethora of supply [think $4.95 flash memory keychains]. Excessive product differentiation [PD] gets in the way of the sharp downward march in ASP that drives this process. If manufacturers use PD to derive monopoly rents from their IP, they simply transfer consumer welfare benefits into monopoly profits. Gradually the world routs around such inefficiencies. Think Japan's disruption of a lethargic American auto industry in the 1960s that was being protected by steel quotas, artificial low petroleum prices, and consumers and designers that were focused on tail fins instead of efficiency. Simply put, my dream is for every kid in India to be able to afford a 1GP Foveon. ASPs for flash aren't going to decline enough for this to happen if manufacturers focus on PD. Whether we are talking flash cards or mobile telephones, cheap should never be an excuse for waste or extravagence. Don't forget that all over Africa and South Asia, $29 is enough to save a human life. Sam