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Technology Stocks : Semiconductor Industry Sales Trends -- Ignore unavailable to you. Want to Upgrade?

To: Ed Hawkins who wrote (63)	8/20/1998 11:20:00 AM
From: Michael Sphar	Respond to of 105

I'm taking the rather simplistic view, of just absolute supply/demand analysis. An increase in worldwide supply continues ASP pricing pressure for all other producers of the same type of chip assuming demand remains unchanged. ASP pressures holds down both revenue growth and margins on individual companies. So in this case (Toshiba announcing increases in flash) I see flash revenue/margin pressure increases on companies like AMD, Atmel and the other US flash producers whose stock already reflects a market sense that competitive pressures are taking their toll. This new competition continues and increases that pressure, for instance its less likely to see a recovery in Atmel's stock price now than before Toshiba's announcement.