Paul, Tony and All Techies,
About two years ago, on this thread and the INTC thread, we discussed the shortsightedness of the Intel analysts. At the time these analysts predicted pricing and margin pressures on Intel?s low end PCs. The predictions were so negative that one might have thought at the time that Intel would not recover for many years to come, if ever.
But as I recall, there were many posts here, including my own, which opined that the proliferation of PCs would create strong demand for Intel?s higher priced Xeon and Merced Servers. The argument was that these Servers would be needed to support all those new lower priced PCs. Well it took the analysts two years to recognize it, but I believe it is this phenomenon that has been driving up Intel?s share price.
Now however, the analysts are catching up to us and something new will be needed if we are to go much beyond 100 in the near term. That something, I believe, is the Intel Network support Chips. I don?t believe that the analysts know how to size this potential market, and I am one of them. Therefore, could you please put into layman?s terms what you believe the potential is for this new market? Could you also please tell us how IBM?s future entry into this market might stack up against Intel?s entry.
Thanks and Best regards,
Jules |
