sunflash-Distributed to mailing list sun/NC/north-carolina sunflash-Send requests, problems to owner-sunflash@suntri.east.sun.com ---------------------------------------------------------------------------- The Florida SunFlash Price Increase For 4 MBit-Based Memory X-Options SunFLASH Vol 57 #8 September 1993 ---------------------------------------------------------------------------- 57.08 Price Increase For 4 MBit-Based Memory X-Options SMCC increases price on ONLY 4 Mbit DRAM memory x-options No price changes for 16 Mbit DRAM based memory x-options. No price changes for memory in systems. ---------------------------------------------------------------------------- Memory products are being repriced to reflect price increases and availability problems in the industry. The recent Sumitomo Chemical epoxy-resin factory explosion has caused industry-wide price increases and availability issues with 4 Mbit DRAMs used in PCs and workstations. Recently, 4 Mbit DRAM prices in the industry increased by 33%-66%. Third parties and their customers, who cannot obtain stable supplies, are now coming to Sun. Sun can insure stable, uninterrupted supplies to support this large increased demand, but at higher costs. Sun's price increases of 5.3% to 6.0% are very small compared to third party increases of 23-45%. 16 Mbit DRAM prices and availability are not expected to be affected by this explosion. Sun is the world's largest customer for higher density 16 Mbit DRAMs. As recent as August 4, Sun reduced 16 Mbit based memory x-options by 20%-27%, when 4 Mbit DRAM prices in the industry were going up. Sun will make the best use of its memory in systems, managing supply and demand to insure the lowest priced solution for its customers. Sun offers systems with 4 MB, 8 MB, 16 MB, 32 MB, 64 MB, 128 MB, 256 MB and 512 MB's of memory installed. X-options, which are tied to either 4 Mbit or 16 Mbit DRAMs and cannot be substituted, will be more dependent than systems upon increased demand, market price and availability issues. Q. Why only 4 Mbit DRAM based x-options? A. 4 Mbit DRAMs are most affected by the Sumitomo factory explosion. One 16 Mbit DRAM, uses 1/4 the amount of epoxy-resin as four equivalent capacity 4 Mbit DRAMs. 4 Mbit DRAMs are used in PC's and workstations. 16 Mbit DRAMs are used only in workstations. Q. I thought you recently said that the Sumitomo epoxy-resin factory explosion would NOT affect Sun memory prices? A. On August 4, 1993 we said: "This explosion will probably increase 4 Mbit DRAM leadtime to all customers worldwide. It will not increase Sun's prices in the near term, as has been the case with many third party suppliers. Sun is a major customer to multiple, global sources of DRAMs and SIMMs. We have long term agreements with suppliers and do not see the market volatility that small third parties see." The price increases are an indirect, not direct, result of the explosion. The problem is that third parties and their customers, who are having difficulties getting product from their suppliers, have turned to Sun to meet their demands. Major Sun memory COMPETITORS have actually placed orders on Sun for large quantities. Demand is running much higher than previously forecasted. DRAM suppliers are taking advantage of the situation and can sell product at a higher price in the open market. For Sun to meet the large demand increase, we will have to buy additional DRAMs at current, higher market prices. If demand matched prior forecasts, Sun would have no need to raise prices. Also, third parties had quotes valid for 7 days, now its only 24 hours. Sun memory quotes are typically valid for 30 days. Finally, in today's memory business prices change daily. This is the only Sun memory price increase since November 1992. Q. What effects will the recent strength of the Japanese Yen have on memory prices? A. We expect the strong Yen will cause additional upward DRAM price pressure, since Japan supplies 80% of the world's DRAM production. U.S. ORDERING AND PRICING INFORMATION ------------------------------------- Prices and discount categories of other memory products not explicitly listed below are unchanged. THE FOLLOWING ITEMS APPEAR ON BOTH THE END USER AND RESELLER PRICE LISTS Memory ------ Order List Disc. SunSpectrum Description Number Price Cat. Silver Price ============================================================================== 4-Mbyte Memory Expansion for SPARCstation(TM) ELC(TM) (4-Mbyte SIMMs) X104Q* $ 290 A NC 4-Mbyte Memory Expansion for SPARCstation IPX(TM) (4-Mbyte SIMMs) X104U* $ 290 A NC 8-Mbyte Memory Expansion for SPARCstation LX(TM), SPARCclassic X, SPARCclassic(TM) (4-Mbyte SIMMs) X108R $ 555 A NC 16-Mbyte Memory Expansion for SPARCstation 10 (16-Mbyte SIMM) X116F $ 975 A NC 16-Mbyte Memory Expansion for SPARCstation ELC (16-Mbyte SIMMs) X116Q* $ 975 A NC 16-Mbyte Memory Expansion for SPARCstation IPX (16-Mbyte SIMMs) X116U $ 975 A NC 16-Mbyte Memory Expansion for SPARCstation IPC (4-Mbyte SIMMs) X116Y* $ 1,000 A NC 16-Mbyte Memory Expansion for SPARCstation 2 (4-Mbyte SIMMs) X116W* $ 1,000 A NC 32-Mbyte Memory Expansion for SPARCserver(TM) 1000 (8-Mbyte SIMM) X162A $ 2,225 A NC 64-Mbyte Memory Expansion Board for SPARCserver 600MP (4-Mbyte SIMMS) (X)164A $ 7,375 A NC 64-Mbyte Memory Expansion for SPARCserver 600MP (4-Mbyte SIMMS) X168A $ 4,000 A NC 64-Mbyte Memory Expansion for SPARCcenter(TM) 2000 (8-Mbyte SIMMs) X170A $ 4,450 A NC * Transition announced on this product. Spare Parts ----------- THE FOLLOWING ITEMS APPEAR ON THE SPARES PRICE LIST Part Number Description Price Discount ================================================================ #501-1812 4-Mbyte SIMM, ELC, IPX $290 A #501-1991 4-Mbyte SIMM, LX, Classic, X 280 A #501-2273 16-Mbyte SIMM, SS10 975 A #501-1822 16-Mbyte SIMM ELC, IPX 975 A #501-1739 4-Mbyte SIMM, SS2, IPC 250 A #501-1817 8-Mbyte SIMM, S1000 560 A AVAILABILITY ------------ These new prices for memory options are effective immediately. (c) 1993 Sun Microsystems, Inc. Sun, Sun Microsystems, the Sun logo, Sun Microsystems Computer Corporations, ELC, IPX, and LX are trademarks or registered trademarks of Sun Microsystems, Inc. All SPARC trademarks, including the SCD Compliant logo, are trademarks or registered trademarks of SPARC International, Inc. SPARCstation, SPARCclassic, SPARCserver, and SPARCcenter are licensed exclusively to Sun Microsystems, Inc. Products bearing SPARC trademarks are based upon an architecture developed by Sun Microsystems, Inc. All other product or service names mentioned herein are trademarks of their respective owners. ********************************************************************** For information about SunFlash send mail to info-sunflash@Sun.COM. Subscription requests should be sent to sunflash-request@Sun.COM. Archives are on draco.nova.edu, ftp.uu.net, sunsite.unc.edu, src.doc.ic.ac.uk and ftp.adelaide.edu.au All prices, availability, and other statements relating to Sun or third party products are valid in the U.S. only. Please contact your local Sales Representative for details of pricing and product availability in your region. Descriptions of, or references to products or publications within SunFlash does not imply an endorsement of that product or publication by Sun Microsystems. Send brief articles (e.g. third party announcements) and include contact information (non-800#, fax #, email, etc) to: John McLaughlin, SunFlash editor, flash@Sun.COM. +1 305 351 4909