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Technology Stocks : Intel Corporation (INTC)
INTC 50.22-0.7%Feb 9 3:59 PM EST
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To: Aaron Cooperband who wrote (4612)10/28/1996 12:32:00 AM
From: Paul Engel   of 186894
 
Aaron - Re:" Microsoft's latest announcement that they will be
teaming up with Intel to produce a low cost PC to compete with Sun's low
cost network computers?..."

This is a very reactionary move. Oracle is announcing their NC and SUNW is announcing their NC, and on Tuesday (?) Oracle and Netscape are going to make some announcement of a joint venture.

So, I believe the Microsoft/Intel deal is a hastily thrown together agreement to counteract all these other NC announcements/alliances. Perhaps Microsoft wants to get the media attention away from its competitors.

In December, 1995, Microsoft made an announcememt that, henceforth, the internet would be the focal point of the company's efforts. This announcemenmt was largely greeted by the financial community as a sign of proper re-direction from a company with no prior internet directives.

Since then, the company and its products have been widely praised (including the stock).

I believe the current deal is being done just to show Wall Street and Sand Hill Road (Silicon Valley's main financial alley) that Microsoft and Intel are not going to leave the NC playing field to every one else. They will defend this "turf' as if they invented it.

After all, Microsoft invented the Internet, didn't it?

Paul
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