OT: how much do memory makers make ?

"....Rambus' unusually high royalty rates helped provoke the legal confrontation. In the Virginia trial, Rambus executives disclosed that the company charges a 3.5 percent royalty for one of its memory chip designs, about three times the industry average. The higher royalty expense can make the difference between a profit and loss for chip makers...." 3.5% royalty makes the diff between profit and loss, then how much do they actually make ? 2% profit ? then what's the point of the business ? -

"JOHN METCOW" <[email hidden]> wrote in message news:[email hidden]...

Quoted text (15 lines)

> "....Rambus' unusually high royalty rates helped > provoke the legal confrontation. In the Virginia trial, > Rambus executives disclosed that the company > charges a 3.5 percent royalty for one of its memory > chip designs, about three times the industry average. > > The higher royalty expense can make the difference > between a profit and loss for chip makers...." > > > 3.5% royalty makes the diff between > profit and loss, then how much do they actually make ? > 2% profit ? > > then what's the point of the business ?

About the same as for being in the grocery business, which suffers from similar low markups. KFG