Rainer....your graph even states that sizes are not to scale. Can you please provide support to show where you came up with data to produce such a graph. I would be surprised if you have any intimate knowledge of what "their costs" or "their price" or "POET's costs" or "POET's price" is to be able to produce such a graph. You even state that you are assuming that POET can offer its VCSEL transceivers at a market price below its competitors which indicates to me that your graph is total nonsense.

I think what Rainer was doing was a kind of "back of the napkin" representation of how he sees POET undercutting the competition. He is taking it for a given (based on the many discussions here of monolithic packaging and how it reduces costs for the POET process) that POET's general statements regarding their price advantage of not needing to assemble their end product are true, and that this production expense is expected to be significantly lower than that of their competition. Hence the greater profit in spite of the lower selling price. He was simply trying to visualize that likely pricing/profit outcome by means of a rough graph.