QS, I agree, one shouldn't believe something just because a company executive said so. But INTC cited numbers from IDC:
Look at the numbers, Miner said. According to International Data, Intel now takes a 10% market share for servers that cost between $50,000 and $100,000, but that share will increase to 58% within four years. And it has a 40% market share now for servers that cost between $25,000 and $50,000 -- a share that will grow to 70% in four years. Below $25,000 it already holds 80% of the market. Unlike the desktop PC market, servers mean high profits for Intel since it will be selling its top-line Xeon, priced at $3,600 each. This is one area where Intel's fabulous margins can be maintained.
INTC is moving up the high end server/workstation ladder. I believe they have the business model that will allow them to achieve their goal. Plus since AMD is causing prices to fall for desktop, INTC has additional incentives to move aggressively into SUNW's market where margins are higher. I mentioned the article however, not as proof, but rather to counter the notion that many of the longs on this thread have; that guys like myself are just trying to cause FUD and that any threat from WinTel is baseless.
Dale |
