"Declines in key component costs combined with improved processor performance are likely to drive continued strong demand as we move into the new year."

His goal is to reduce the component costs - now about $1 billion a year -by 20 percent within four years.

The computer maker also said that lower component costs and higher selling prices helped it produce stronger-than-expected earnings in its first quarter.

The component cost of an item is just one aspect of its cost.

The decreases stem in part from lower component costs, the company said.

Shame that you can't future proof against component costs.

The component costs have taken on a more normal decline, compared to last year, and pricing is stable.

Cray attributed the drop to increased competition and higher component costs.

Each ritual has a casting time and a component cost.

At the same time, it could not cope with soaring component costs and plunging prices for small computers.