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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: DavidG who wrote (27540)	2/2/1998 12:58:00 AM
From: Ed Beers	Read Replies (2) \| Respond to of 53903

>>..but if he would have known that SDRAM is different and certainly more significant he would have seen that it is priced at $4.00 to $4.25 the last two months yielding close to $4.00 asp for 16mb chips. David, If you look at recent retail prices of SDRAM DIMMs, you have to conclude that these prices are too high. I purchased one 32 MByte DIMM in December and a second in January. Lets assume that DIMM assembly, DIMM test, and distribution margins (wholesale and retail) only amount to $10. December purchase: Retail quantity one price: $55 - Assembly, test, distribution: -$10 --- Cost of 16 SDRAM chips $45 $45/16 chips = $2.81 per chip January purchase: ($60 -$10)/16 = $3.13 per chip Price today at the current retail price of $67: ($67 - $10)/16 = $3.56 per chip Now of course neither of the DIMMs I purchased used Micron SDRAM. The first used Lucky Goldstar and the second used TI but I don't see any reason for MU to get any premium pricing. Micron, in the last two conference calls, has indicated that they only get a 10% price premium for SDRAM over EDO for their contract pricing. I agree that Micron is making mostly SDRAM and that probably allowed them to stay out of the $2 per chip blood bath that occured in EDO memory. However, an ASP above $4 doesn't sound like even a remote possibility to me. Ed