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Technology Stocks : Intel Corporation (INTC)

INTC 36.91

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3:59 PM EST

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To: tcmay who wrote (137264)	6/13/2001 2:08:01 AM
From: stak	Read Replies (1) of 186894

Tim, >>For many of them, it makes little sense to buy a blazingly fast PC if overall throughput for many intended uses is throttled by the dial-up speed. Compression can only go so far (typically not much more than 2x), so a faster CPU is not of much use.<< Do you feel Microsoft's .Net will put more demands on the processor and make people feel that it's necessary to upgrade? >>I figure this is why a _lot_ of individual users are shrugging at the prospect of replacing their systems for a marginal improvement in speed, and why many corporations are deciding to save money by not upgrading the systems they installed in droves in 1999 in preparation for Y2K.<< I think so too, it's this apathy that's killing sales. There has to be some discernible difference to make individuals fork out. Moving up the GHZ range to 2.0 and beyond will make the improvement even harder to notice. There's not much way around it. I wonder if for how many of the corporations it's just a case of having no money left to spend on upgrades? >>People who have access to cable modems or ADSL are getting this, but I would expect those people are slightly _more_ likely to get faster CPUs than those who are still stuck with 56K or slower dial-ups.<< I would have agreed with you about "those people are slightly _more_ likely to get faster CPUs" in the past. I think those that have just got broadband are pumped up and they want to see what a faster CPU can do for them too. But after awhile( when they have to use dial-up again) many realize that the pipe is more important to them than the CPU. So they(myself included) are tied into 600$/year instead of ~$275, which is around $600 over a 2 year period that could have gone to upgrading to the fastest CPU. One note: Our area has had blanket high speed availability for 4-5 years and it changes the way of thinking about computer use. Many still use slower PCs because their usability comes from the net, not from their apps on the hard drive. >>In contrast to your point, I'd expect those with slow connections are in no hurry to upgrade to the fastest CPUs. It's probably not a matter of either/or.<< Yes that could very well be, I'd like to see a survey on what PC users value more nowadays, processor speed or bandwidth speed. And why or why aren't you upgrading to the fastest CPUs.

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