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	<title>Comments on: Flash Garden: 16 GB USB drive</title>
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	<description>Data storage info &#38; analysis</description>
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		<title>By: Anonymous</title>
		<link>http://storagemojo.com/2006/04/25/flash-garden-16-gb-usb-drive/comment-page-1/#comment-46966</link>
		<dc:creator>Anonymous</dc:creator>
		<pubDate>Wed, 04 Apr 2007 09:19:10 +0000</pubDate>
		<guid isPermaLink="false">http://storagemojo.com/?p=45#comment-46966</guid>
		<description>Today in Russia, in May 2007, it is possible to by a 8 Gb USB flash drive for only 40 USD!</description>
		<content:encoded><![CDATA[<p>Today in Russia, in May 2007, it is possible to by a 8 Gb USB flash drive for only 40 USD!</p>
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		<title>By: e2eiod</title>
		<link>http://storagemojo.com/2006/04/25/flash-garden-16-gb-usb-drive/comment-page-1/#comment-55</link>
		<dc:creator>e2eiod</dc:creator>
		<pubDate>Fri, 19 May 2006 07:29:55 +0000</pubDate>
		<guid isPermaLink="false">http://storagemojo.com/?p=45#comment-55</guid>
		<description>Yes, they are recovering design costs. There is some confusion about what &quot;design costs&quot; really are and how they are recovered. Here is one view.
Duriing chip Development the Lab may produce in quantities of less than 100, 100, 200, 400, a 1000, maybe 2000 devices for testing. Depends on the chip, the team and the equipment they have to work with. The equipment and people they have to work with are a function of the Marketing/Sales Forecast for the product. This is all guesswork unless it is an &quot;incremental&quot; product or a &quot;custom&quot; product.
When the &quot;yield&quot; in the Lab hits 20% they start moving to Production. They might start sooner if strong demand appears or the &quot;custom&quot; customer changes the timeline.
Initial Production yields can be all over the map. Chips can fail automated testing InLine but be &quot;hand-selected&quot; manually. This raises yields but at a price. I&#039;ve had early chips that out-performed any chip built later. I&#039;ve also had a higher failure rate in those chips. Once the yield stabilizes InLine the price starts to go down to move product. This drives a technology where you are obsolete in six months and totally obsolete in two years. 
Oil companies don&#039;t have this problem. For one they are a cartel, like Cargill who control all grain produced in the USA and most of the world, and two, if they don&#039;t like the price they can leave the oil in the ground, or anywhere. Rail oil cars and unused railroad sidings have become very popular with oil companies for storing crude oil. You have to sell those chips or go out of business. There are some stories, though, of creative thinking... like the little plant in the Orient that burned down...</description>
		<content:encoded><![CDATA[<p>Yes, they are recovering design costs. There is some confusion about what &#8220;design costs&#8221; really are and how they are recovered. Here is one view.<br />
Duriing chip Development the Lab may produce in quantities of less than 100, 100, 200, 400, a 1000, maybe 2000 devices for testing. Depends on the chip, the team and the equipment they have to work with. The equipment and people they have to work with are a function of the Marketing/Sales Forecast for the product. This is all guesswork unless it is an &#8220;incremental&#8221; product or a &#8220;custom&#8221; product.<br />
When the &#8220;yield&#8221; in the Lab hits 20% they start moving to Production. They might start sooner if strong demand appears or the &#8220;custom&#8221; customer changes the timeline.<br />
Initial Production yields can be all over the map. Chips can fail automated testing InLine but be &#8220;hand-selected&#8221; manually. This raises yields but at a price. I&#8217;ve had early chips that out-performed any chip built later. I&#8217;ve also had a higher failure rate in those chips. Once the yield stabilizes InLine the price starts to go down to move product. This drives a technology where you are obsolete in six months and totally obsolete in two years.<br />
Oil companies don&#8217;t have this problem. For one they are a cartel, like Cargill who control all grain produced in the USA and most of the world, and two, if they don&#8217;t like the price they can leave the oil in the ground, or anywhere. Rail oil cars and unused railroad sidings have become very popular with oil companies for storing crude oil. You have to sell those chips or go out of business. There are some stories, though, of creative thinking&#8230; like the little plant in the Orient that burned down&#8230;</p>
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