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To: Fred Fahmy who wrote (40781)	11/9/1998 11:19:00 PM
From: Land_Lubber	Read Replies (1) \| Respond to of 53903

Fred, > Cheaper PC's means more demand for PC's (i.e. higher volumes). Higher volumes mean greater demand for memory. What is better than more demand for cheaper PC's? More demand for expensive PCs. The latest data is showing that demand is shifting from the absolute cheapest models to models with a few more frills (like extra memory). The cheapest models are actually getting so cheap and so bare bones that the majority of buyers now want more than that, and can afford to pay for the extras. Land_Lubber

To: Fred Fahmy who wrote (40781)	11/10/1998 12:24:00 AM
From: Thomas M.	Read Replies (2) \| Respond to of 53903

You are completely ignoring the numbers. High-end PCs have significantly (~100%-400%) more DRAM than low-end PCs. This is hardly offset by the incremental unit demand growth (~10%) stimulated by price drops. A shift by buyers to the low end means less demand for DRAM. Tom

To: Fred Fahmy who wrote (40781)	11/10/1998 2:24:00 AM
From: Skeeter Bug	Respond to of 53903

>>Cheaper PC's means more demand for PC's (i.e. higher volumes). Higher volumes mean greater demand for memory. These concepts are nearly (except for maybe MB) universally accepted.<< fred, you make some assumptions here. cheaper prices reflect more supply than demand. higher prices reflect more demand than supply. if supply is static then higher prices would be better for mu than lower prices. higher prices would mean that demand is well above supply. this would bode well for companies like mu. supply would grow to match demand. are low prices, in and of themselves, good for mu? no. prices have never been lower and mu's business is in the toilet. i'm assuming a couple of things. one is that the market (pricing) is driven by the free market and not manipulated like it can be over short periods of time. the short term manipulation (higher prices while supply is greater than demand) would spell disaster. i also assumed that supply is static. while this may be true for short periods of time, it isn't true over the long haul. having said all that, i do not expect prices to rise. i might expect them to firm. if they don't then a pii300 box will be given away free with the purchase of a disk drive in about 3 years. i do think mike mispoke. i think what he was trying to communicate was a strengthening of pricing indicating that pc demand was equal to supply. that is good for the long term viability of the industry and, therefore, mu. just some thoughts...