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

To: Clarksterh who wrote (30783)	6/1/1999 11:33:00 PM
From: Katherine Derbyshire	Respond to of 70976

Well, the last "this time things are different" was in 1995. They weren't different. I would be a bit surprised if the communications chip ASP is lower than PCs. Remember, most of the chips in a PC are commodity DRAMs or inexpensive "glue" chips. The MPU is expensive, but there's only one of it. As for the ASP of the industry declining while all the sectors increase, it's too late at night for me to wrap my brain around that and decide if it's mathematically possible. OTOH, the ASP-capex correlation goes back 20 years. Is the shift from PCs to communications really the first change in product mix in 20 years? Somehow I doubt it. Katherine