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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (13727)	12/21/1997 5:24:00 PM
From: davesd	Read Replies (2) \| Respond to of 70976

Ian....I think you are missing the problem....it's not just the cost of production....it's the SUPPLY...there is just too much DRAM....It is the current supply of DRAM that has caused the price to plummet. You can only use so much of it. If everyone upgraded to improve yeild....then we would just have more DRAM that has no end market....Why is it that so many folks are putting the brakes on new DRAM FABS??? Cause they can't raise the cash to do it.....since there is no ROI at this point. We just went thru the busiest sales period for DRAM.....and guess what the price fell by 50% during this period. If the world only needs 50 mill chips a month...producing 70mill dosen't increase the demand, it only creates a glut and price slide. It's like oil...produce more and the price goes down...produce even more and pretty soon the price is so low that you can't make a profit. I wonder if that why OPEC was created....maybe DRAM needs an OPEC. dave