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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: FMK who wrote (6314)	12/27/1998 3:16:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 27311

FMK, of course $2.50/watt-hour is much better then $1.65/watt-hour, assuming that the premium does not require any big chunks of additional hardware included in the battery. It is quite possible that the initial number of $1.65 was based on raw batteries, relying on the OEM to include the charging/discharging electronic controls in their device. I believe that because of the variability of computing platforms and the capricious behavior of lithium batteries in general (and I presume the polymer type is not less capricious), OEM request that the battery manufacturers include an electronic control system in each battery. If this control cost $1 per battery, your calculations are once more in trouble. Hopefully, these control cost no more then $.45 or so, leaving the profit margins intact. Zeev