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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Katherine Derbyshire who wrote (30762)	6/1/1999 10:05:00 AM
From: Jack Kunkle	Read Replies (2) \| Respond to of 70976

Katherine: Respectfully submitted. I am not arguing that ASP's, as you have defined them, decrease. As you have succinctly pointed out the numbers speak for themselves. I would suggest that to the end user the greater density and more functions on a devise offer greater net benefit/price than the previous generation. To simply produce data that suggests that ASP's normally trend upward is misleading. To draw the conclusion from the data that chips are not commodities will result in a poor investment decision. I believe that once a new generation devise has entered onto the market with a data point having a greater ASP relative to the previous generation (but providing more "economic" benefit to the end user) the natural trend for the price is downward over time. Finally, given Moore's second law, the profit structure to the manufactures of the newest generation product is not linear and thus to suggest that manufacturers reap huge profit margins as ASP trend upwards is also misleading. Respectfully submitted, Jack Kunkle :')