New component pricing

Good morning to all,

Just received the latest NS news email where they announce new parts. The LM26001 piqued my interest, not a lot but enough to take a look. I thought automotive and consumer would mean a good bargain.

Wrong. Budgetary 1k was $3. Even more on a distributor listing. Ouch!

What are they thinking?

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Regards, Joerg

http://www.analogconsultants.com
Reply to
Joerg
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Joerg a =E9crit :

The price per thing-in-block-diagram is not too bad... And you can always get some samples for free.

Thanks, Jenalee K.

Reply to
Jenalee K.

Hello Jenalee,

It's just a switch mode regulator, and not even one with an operating frequency to write home about. I have designed complete switcher circuits above 500kHz for less.

I don't really care what samples cost. The budgetary price and the street price for high quantities are what matters. That determines whether something makes it into a mass product or not.

--
Regards, Joerg

http://www.analogconsultants.com
Reply to
Joerg

CEO's Pension package?

I just had sticker shock looking for opamps, Quad, 10mhz, DC Rail-to-rail, nothing less than $1(1k). Guess it'll be back to the LF347.

Cheers

Reply to
Martin Riddle

Hello Martin,

I often do that kind of stuff with discretes. Works fine but I have a hard time with those 0402 and 0201 packages. You can get pretty hot transistors for a few cents, resistors for half a cent and so on.

I'll never understand those "let's see how much the market will bear" attitudes on initial pricing. That just slams the doors on them. Once a design is done without a new chip there is hardly any case where that new chip will see a second chance to get in. I had seasoned sales guys almost in tears about that. "Well, so which chip are you going to use then?" ... "None".

Reminds me of California home sellers right now. Many tell their realtor some fantastic amount of dough they want for the house. Then there are several open house events and not even look-see folks stop by.

--
Regards, Joerg

http://www.analogconsultants.com
Reply to
Joerg

Fuck me.......

Are you in a bad 'I'm a fundamentalist Christian' mood so as what you have to post some shit about someone selling something for what you consider to be a shit price and then have to pounce on your first respondant and tell them how big your f****ng big f****ng christian c*ck is.

Like it's not our fault you can do it all for half of a sixth of a 40106 but you have to rely on some other f****ng non christian f*ck up to mould your f****ng toilet for you.

That's OK, I will think good things about you tonight.

I won't gaurantee Dad will pay attention but... hey it's no skin off my falling asleep time.

DNA

Reply to
Genome

In Portland, Oregon real estate is still hot enough that most realtors are encouraging would-be buyers to offer *above* the asking price. :-(

Reply to
Joel Kolstad

You've misread this chip. It's going after the power-conscious battery-operated market, with its high efficiency over a 1000:1 load-current range.* There's not much low-cost competition in that arena. I'm glad NSC is astute with their product pricing; we need them to make the healthy profits they enjoy** on things like this, so they can keep on making the cheap stuff, rather than discontinuing it like so many other IC manufacturers do.

  • Operating at 5V with 1.5A load (7500mW out) an LM26001 circuit consumes a low 750mW from the battery. Operating at 5V and 2mA load (10mW) the power consumption drops by 375x to only 2mW. It achieves this with an intermittent-switching technique that kicks in below 100mA load, coupled with a low 40uA circuit drain.
** The last quarter shows a 21% net income after $85M in taxes, and a 25% ROI. I remember when NSC lost money year after year, and we worried about the survival of our favorite parts.
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 Thanks,
    - Win
Reply to
Winfield Hill

Hello Win,

True. I wouldn't want the LM3478 subsidizing boutique parts. On the more mundane chips luckily there is a healthy competition.

Yes, I've looked at that. I have done a few of those in logic/discrete and used pulse skipping for really low loads. They went to well under

10uA under no load.

Anyway, they mentioned "in dash" apps. Most of my university friends are MEs and the majority ended up in automotive. That is a real cut-throat design environment even though my friends work at higher class companies. Before they spend a single Dollar more on a design they better have a darn good reason for that. I doubt they'd even consider a part when it's $3 budgetary unless it contains an absolute must-have marketing gimmick.

NS is a nice company. So are most other domestic electronics manufacturers. I just don't understand what Intel is doing now, pitching much of their comms sector to the bidders.

--
Regards, Joerg

http://www.analogconsultants.com
Reply to
Joerg

Hello Chris,

Well, I ran a division of a company for a while so I had to be at the quarterly grilling parties. Margin had to be ok but they also looked at total sales growth. When that ever stagnates you can see the stock price tank rather quickly. For most stock the market value already contains a certain hype factor. "The street" wants to see that hype corroborated and that happens via same store sales or same account sales.

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Regards, Joerg

http://www.analogconsultants.com
Reply to
Joerg

From what I understand, the stock analysts are really obsessed with gross margin and so the semi companies have to make sure that this number averaged over all sales stays above a certain level. This can mean accepting a much lower profit in total dollars, but that is what the investors "want". E.g. part costs 50c to make, they would rather sell 100k parts for $3 each, total profit $250k, instead of 1M parts for $1 each, total profit $500k.

Chris

Reply to
Chris Jones

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