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Rambus Inc. Message Board

  • market_swami market_swami Jun 24, 2001 7:55 AM Flag

    Intel will dump rambus

    http://news.cnet.com/news/0-1006-200-6291517.html

    Memory to run at 1200 mhz by 2005?! Oh wow! I will likely have a molecular computer by then!

    As it stands right now, intel is getting screwed by AMD because their chipsets are perfoming faster than intel's and their memory is 1/3 the cost. Rambus is charging 3x more for memory that is giving virtually no performance gain. Intel is releasing the 845 chipset to try and regain the non oem market. The 845 will utilize pentium 4 and DDR ram. Once this is done, I do not think anyone will want to pay 3x more for rambus. The only thing selling rambus now is that it is necessary to own a p4 or p4 xeon.
    Rambus will either have to slash prices hugely and sell at a loss (their manufacturing process is crap, and that is why it is so costly now) or they will have to increase the performance drasticaly which by their current roadmap is not happening.
    Intel has not confirmed sticking with rambus, and they will likely not if they continue to lose market share to AMD.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Swami,
      Your crystal ball needs recalibration. When you said:
      "Rambus will either have to slash prices hugely and sell at a loss (their manufacturing process is crap, and that is why it is so costly now)"
      You showed how little you really know. Rambus doesn't manufacture and sell memory and therefore can't cut the price. They collect royalties which is an insignificant part of the price. Secondly the processes used are the processes of the manufacturers.
      Furthermore, Intel wants and neeeds Rambus because they are increasing processor speeds to the point that they need the speed performance of Rambus technology to maintain system performance provided by the new speed of processors. Finally, the memory manufacturers will migrate to Rambus technology because the ones producing RDRAM are the only ones making money and that will only increase with time. Have you compared Samsung's results to those of Micron and Infineon lately?
      As I said - Hurry down to the cal lab with your crystal ball. It seems to be in severe need for an update.

    • Shows what I know...
      "Rambus will either have to slash prices hugely and sell at a loss (their manufacturing process is crap, and that is why it is so costly now) or they will have to increase the performance drasticaly which by their current roadmap is not happening. "

      • 2 Replies to japiersa3
      • Yea, that's why rambus is in over 300 products now. Nuff said!

      • general_fartimus_maximus general_fartimus_maximus Jun 24, 2001 9:59 AM Flag

        RAM market will be dead with very low profit margins for years. Production efficiencies have increased far more rapidly than demand and even with an economic recovery in the tech sectcor which will likely take at least another 2 yewars, you will never again see the supply and demand imbalances which we saw in the late 90's which allowed RAM prices to skyrocket.

        The RAM market has and will maintain itself as a low margin business for the foreseeable future. So long as cheap memory alternatives exist a natural price cap has been created for RAM prices put into PC's. Consumers are quickly understanding that they really aren't getting much bang for their buck with extra RAM and latest superfast processors. The vast majority of PC users simply don't need or reqiuire the latest speed in PC and memory for their everyday purposes and now they are beginning to refuse to pay for it!

    • Rambus can neither raise nor lower prices on RDram since they do not make the products. You are no different than all the other bashers in that you take your negative opinion of Rambus and assume that that opinion is a fact insofar as the future is concerned. You see what you want to see without regard to what is. Art.

    • MS,

      From the earnings reports this week, it pretty obvious that current low SDRAM pricing can't be maintained. Your comparison between SDRAM and RDRAM pricing is therefore meaningless.

      It is likely that SDRAM is currently selling at 1/3-1/5 of it's natural pricing, which puts it right at parity with RDRAM.

      I expect to see some major exits from the SDRAM market in the next quarter, which will lead to much higher pricing.

      Scumbria

 
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