Paging Peter Alfke (3S1000 pricing)

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You mentioned in a recent thread that the 3S1000 would sell
for $20 in CY2004 in the slowest speed grade and large
quantities.

I was recently quoted $85.65 for XC3S1000-4FG676C
in 5000s for CY2004. Is there really such a huge difference
between 5000 piece prices and "large quantities"?

I ended up going with an off-the-shelf solution as being more
cost-effective, but a $35 ish price might have made for
a different decision.



Re: Paging Peter Alfke (3S1000 pricing)
Pete, I have forwarded your e-mail to our marketing group. Let's see
what they say.
I do not have to explain to you that late 2004, slowest speed grade,
plus high volume are the parameters that get you the lowest price. Let's
hear it from Marketing...
Peter
=================
Pete Fraser wrote:
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Re: Paging Peter Alfke (3S1000 pricing)
Here is the answer I got from marketing:
"As we make devices cheaper we optimize all of the backend steps
(Assembly, Sort, FinalTest, Shipping quantities, Stocking, Distribution
Stocking). All of these rely on having large volume . Consequently,
Spartan lower-volume pricing is comparatively higher than is common in
the industry.
In this instance however the  customer is also using an expensive
package as opposed to a cheaper FG256 package, which makes the
difference seem even larger. An FG256 would be a lot cheaper. However he
has to get a quote from his regular channel."

I hope this explains the surprising difference between $85 and the
projected $20.
It's due to relatively low volume and the choice of an expensive package.
Peter Alfke
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Peter Alfke wrote:
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Re: Paging Peter Alfke (3S1000 pricing)
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Howdy Pete,

Believe me, you are not anywhere near "large quantities."  Xilinx uses
that phrase when they put useless prices in their press releases - it
most often refers to 250k pieces a year, so you are only off by 50x.
See
http://www.xilinx.com/prs_rls/silicon_spart/0333spartan3.htm or almost
any other of their recent press releases for examples.

Have fun,

   Marc

Re: Paging Peter Alfke (3S1000 pricing)
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He may be nowhere near the quarter million pieces to get the optimum
price, but I bet with a little arm twisting - I mean, by asking nicely -
he can get $30 or better.  When a part is new a chip maker will try very
hard to get early design wins.  Without them their parts will wither on
the vine and never recover.  I don't think 5000 pieces a year is
anything to ignore in this market.  He actually said he would be
ordering in 5000 piece quantities, so the annual volume may be much
larger.  

--

Rick "rickman" Collins

snipped-for-privacy@XYarius.com
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