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To: Chas who wrote (36493)	7/26/1998 3:52:00 AM
From: Skeeter Bug	Read Replies (2) \| Respond to of 53903

chas, first of all, mu is sitting on nearly 100 tons of inventory. the safe bet is that many other chippies are doing the same. the minute drams become profitable they will turn on the spiggot and drop the prices. cartels don't works. not even in the middle east. don't suspend basic economics due to the love for a company. pc on a chip threatens mu's very existence (sp?). it is not easy to reasolve glut situations. remember when korea held back inventory? sure, pricing went for $6 and change to over $10. when they unleashed, though, they drove pricing down to $1.60 - lower than it would have otherwise been. what if the disk drivers boost prices? we can add another $50-100 to a box to get the dds and the chippies profitable? well, what will anemic pc growth do when asps GO UP!? growth will stop and contraction will begin. that means demand goes down. another possibility is that dram gets cut from 64 mb to 32 mb as boxies cut costs... tanstaafl...