Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Bill Jackson who wrote (78109)	11/1/1999 2:34:00 PM
From: Bilow	Read Replies (2) of 1582104

Hi Bill Jackson; Yeah, most people don't realize how little actual silicon is involved in a modern computer. Like you say, take a look at a mother board, the most prominent feature is a bunch of big connectors. And a lot of the silicon is there to deal with massaging data into and out of those connectors (in ways which get sucked onto chips if the connectors are gone). Once the technology stabilizes (in the sense that consumers are largely satisfied with last year's product), we will again see office equipment like computers keeping its resale value for years at a time. The great example of this in the past was the IBM Selectric typewriter. For years they commanded high prices, even when used. Great business for IBM. IBM had the patent protection to keep that business to itself. The company which has the intellectual property required to keep its margins high in the box maker industry, is MSFT, I think, by the way. Maybe Linux will reduce some of that... Hard to predict the future, but you have to hope that we end up sending boxes out to a decent percentage of second and third world households, in order to keep volumes up. -- Carl

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