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  3. April 2002

Re: Monday announce - interactive tax

>>This capacity on demand is interesting.  If the financial investment from
>>IBM is already in the box then how can they charge extra for it to turn
in
>>on?

It's because all the costs are in research/development and manufacturing
facilities, not in the physical elements of the chip.  Letting unused chips
sit inside a box cost them almost nothing.

It's like Dr. Soltis said one time - The reality is that first chip costs
$1 billion, and all the rest cost $10, however if we priced it that way
we'd have a tough time getting anyone to buy the first one.

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