Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: dr_elis who wrote (18203)	4/21/1999 10:21:00 AM
From: Jock Hutchinson	Read Replies (2) \| Respond to of 25814

Your recollection of the CC is simply wrong. Both Wilf and Ellie Antoun made it clear that LSI will make more money per chip on PS II than PS I--with similar volumes. Moreover, your representation that LSI makes a graphics chip for I is also grossly misleading. LSI makes the CPU for I. You really need to go back to the CC replay to get your facts right before you post inaccurate information.

To: dr_elis who wrote (18203)	4/21/1999 12:43:00 PM
From: patrick tang	Read Replies (1) \| Respond to of 25814

I did not take Wilf's answers as evasive but rather it's very hard to compare apples to oranges - pricing on the chips are never flat but falls with time/volume. As such, really need to not just compare ASP at comparable time frames in the life of the product but also need to compare run rate x ASP for total sales $ to see the effect on LSI sales and profit. That's what the analysts tried to do by re-phrasing their questions in different ways. Wilf is not a master at giving press conferences. But I think they got it out of him in the end: 1. PSI and PSII will run concurrently till 2003 and directly at different markets. PSII will obviously run lower volumes because of the much higher price points of $600 to $700. 2. If comparing the same time point in the product cycle, PSII silicon's ASP is higher than PSI's. I take the net results as the total sales $ to Sony should have no drastic decline. Whether it's a plus or slight negative, will have to wait to see what is the consumer acceptance. Hope that helps, patrick