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To: j g cordes who wrote (31698)	12/21/1997 12:15:00 PM
From: Suresh	Read Replies (1) \| Respond to of 58727

Jim, everyone is talking about the increase in price of memory to boost the profitability of these DRAM producers. Computer industry thrives on price cuts and not on price drops. Historically price was dropping all the time but the demand was increasing at a greater pace. Now, we have entered a phase where the supply exceeds demand and there is no way they can increase the price. I don't see the need for memory increasing 4 fold within the next year and hence DRAM producers will be range bound. If the demand equation doesn't change but the price of DRAM goes on increasing I think we will be in deep trouble in the computer industry than we are at present. PS: I think this applies to the entire food chain of computers.... not just the DRAM makers in the near term ( 1 - 2 years). Regards, Suresh