11-26-2002, 01:30 PM
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Contributing Editor Emeritus
Join Date: Aug 2006
Posts: 8,228
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Intel Plans Flash Memory Price Hike - As Much As 40%
"Intel plans to raise prices for processors that contain flash memory technology by as much as 40 percent on Jan. 1 in response to increased demand. The Santa Clara, Calif.-based chipmaker said Monday that demand for processors with flash memory--used to store information in handhelds, cell phones and other devices--is rising as equipment makers add new features, such as digital cameras and color screens. Intel spokesman Tom Beerman said the company plans to raise prices on Jan. 1."
Yuck. I am sure we will see some of this trickle down to the price of the Pocket PC. Then again, maybe this will spur some OEMs to give more serious consideration to ARM alternatives to the X-Scale, like the TI-OMAP used in the Jornada 928.
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11-26-2002, 02:00 PM
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Intellectual
Join Date: Feb 2002
Posts: 145
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The article goes on to point out that we are talking about a chip (128mb) that cost $17 going to $24 or an increase of 7 bucks.
If this cost is passed on, which i think is unlikely, it would be a 20 buck change in the final price.
More likely will be a continued use of 64mb instead of 128mb 
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11-26-2002, 02:21 PM
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Pupil
Join Date: Nov 2002
Posts: 14
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I thought prices normally go down when demand increases!
Very strange... but a novel way to increase revenue!
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11-26-2002, 02:31 PM
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Contributing Editor Emeritus
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11-26-2002, 02:33 PM
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Pontificator
Join Date: Jul 2003
Posts: 1,466
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Quote:
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Originally Posted by JeZaD
I thought prices normally go down when demand increases!
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No. This is economies of scale. Supply and demand dictate price.
IMO, however, this is a money grab by Intel to pad their margins. Just like HP did with the iPaq 39xx series. :roll:
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11-26-2002, 02:45 PM
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Contributing Editor Emeritus
Join Date: Aug 2006
Posts: 8,228
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Quote:
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Originally Posted by Foo Fighter
Quote:
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Originally Posted by JeZaD
I thought prices normally go down when demand increases!
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No. This is economies of scale. Supply and demand dictate price. |
No, economies of scale are when costs are driven down by higher production volume and efficiencies. That is in a vacuum though. External supply/demand forces can enhance or negate the economies of scale.
Anyone want to dicuss why the Laffer Curve is correct? :wink: :lol:
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11-26-2002, 03:47 PM
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Intellectual
Join Date: Oct 2004
Posts: 190
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What would make the price go down rather then up is when these OEMs start using another processor made by someone else, like the ARM proc.
If you want an example of Supply and Demand, remember when the PS2
first came out? Did you notice the prices of it on e-Bay? I saw one as high as $1500.00 on an item that was selling at $299.00.
The problem with Intel here though is that I'm not seeing people lining up at CompUSA to buy the latest and greatest Pocket PCs...I just don't see the overwhelming demand on their supply. Judging by the lines at the CompUSA, Circuit City, and Best Buy stores that is.
They may be shooting themselves in the foot like they did a while back by overpricing their CPUs and then having someone like AMD undercut them and take market share.
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11-26-2002, 04:37 PM
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Contributing Editor Emeritus
Join Date: Aug 2006
Posts: 8,228
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Quote:
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Originally Posted by apeguero
What would make the price go down rather then up is when these OEMs start using another processor made by someone else, like the ARM proc.
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Right - but keep in mind ARM doesn't make processors, they design them then license it. Intel makes ARM processors - both the StrongARM (ARM V4) and X-Scale (ARM V5) are ARM. Then Texas Instruments does the OMAP (ARM V5) and Motorola has the new Dragonball MX-1, also ARM V5. There are others too, like Flextronics.
See http://www.arm.com/
Interestingly, AMD doesn't. They do some MIPS thing, so don't expect to see an AMD powered Pocket PC anytime soon.
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11-26-2002, 05:01 PM
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Pontificator
Join Date: Jul 2003
Posts: 1,466
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Quote:
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Originally Posted by Ed Hansberry
No, economies of scale are when costs are driven down by higher production volume and efficiencies.
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That's what I was getting at. He was confusing [high demand = low prices] with economies of scale.
But you're right. It is a vacuum. A vacuum that sucks in my hard earned money! :wink:
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11-26-2002, 06:33 PM
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Intellectual
Join Date: Jul 2003
Posts: 144
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Ed-
You do realize that the article is talking about Flash memory (the RAM and ROM of the Pocket PC), and you're talking about the CPUs (ARM and X-Scale), which are two completely seperate things, right?
JoshB
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