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

To: robert b furman who wrote (16657)	11/24/2005 8:44:06 PM
From: Big Bucks	Read Replies (2) \| Respond to of 25522

Hi Bob, agreed. I know that fabs/customers also play one vendor against another to gain additional concessions on large orders. On the other side of the coin, the equip manufacturers also offer extra "incentives" to garner sales, particularly at the end of quarter and end of fiscal year to bolster their sales numbers. It is typical to pull in a pending sales order just under the wire to make sales look good for a quarter. IMO, the equipment is priced to allow for significant pricing flexibility...One must also consider that 40%+ profit margins provide significant pricing flexibility. Sometimes it is equipment delivery date commitments that decides which supplier gets the order if the technologies are similar in performance. Being able to meet customer delivery schedule requirements, where there is a large backlog and long lead times, might swing an order to the competition just for reasons of expediency.