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

To: DavidG who wrote (32727)	5/2/1998 10:04:00 PM
From: Chas	Respond to of 53903

DavidG, You are right, upgrades are not the ref point to determine pricing. I know the OEM contract pricing very well, and trust me its not much difference between PC100 and 66Mhz, 10% or less, thats my reference point. So, if you believe that, then the retail guys are probably either getting hosed by the suppliers or making one heck of a markup. These guys are either buying from module makers in the secondary market or the large companies are buying from some suppliers if they have credit. These are the ones that will get the good prices. Once the market settles down on the newness of the PC100 and the supply spills over into the secondary market, then this retail price difference you see will come substantially down. The small module makers who can afford to buy/lease a HP tester and ordered one some time ago are probably going thru shock on the costs like Larry mentioned. Now they have to hire a real engineer to maintain this tester unlike the $10K testers for 66Mhz.ggg Whats your thoughts on MU direction on Monday, the week.? I am sorta hanging out there with 35 may 32.5's. I had no idea the overall market would come back so strong especially in Tech stocks. Good trading.

To: DavidG who wrote (32727)	5/4/1998 6:20:00 PM
From: Ed Beers	Read Replies (1) \| Respond to of 53903

David, Sorry to respond so late, I was away for the weekend. The PC100 SDRAM upgrade from Dell was for a 400MHz Pentium II. The SDRAM upgrade from Dell was for a 333MHz Pentium II. Both had the same price. I mentioned it because it strongly suggests that Dell is paying little or no premium. At this point in the PC100 lifecycle, the pricing to large OEMs (the Dells, Compaqs, and Gateways) is what matters to Micron's profits. In past conference calls, MU indicated that they did not get significant price premiums for SDRAM (over EDO RAM) from the big OEMs even when there was a significant premium for us retail buyers.