Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: akidron who wrote (18044)	3/21/1998 4:42:00 PM
From: Clarksterh	Respond to of 70976

Aki - hand sets and set top boxes are devices that are essentially given away to sell airtime and advertizing Again, this affects the final manufacturer, not necessarily the component supplier. For instance, PC's manufacturers have always had a GM 1/2 that of many of the component manufacturers (Intel, Controllers, ...). The same is true of GSM components, and GSM phones have been 'given away' for many years now. It is probable that the same is true of analog phones as well, but I am not as knowledgable there. The gross margin is set by that component's supply and demand, not by whether the end product is subsidized or not (they are not 'given away' in any case.). Clark