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

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...
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
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 or almost
any other of their recent press releases for examples.

Have fun,


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


Rick "rickman" Collins
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