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To: Carl R. who wrote (45593)	5/4/1999 2:41:00 PM
From: Steve Robinett	Respond to of 53903

Carl, You suggest that If all the producers did enter into a conspiratorial agreement and quit buying equipment the steady increase in demand would result in rising prices and profits for all. On the other hand, it could be argued that falling prices have increased DRAM demand. If prices rose (elasticity of demand being what it is), demand might fall, forcing producers to increase yield to offset lower unit sales. All I'm suggesting is the obvious. The commodity nature of the DRAM market forces producers to adopt a cost-cutting strategy to gain competitive advantage. That means buying equipment, which makes AMAT(capable of making $3-4/shr) in the low 50s start to look good again. Best, --Steve