Fred, re: Intel branded PC's
Just for the record I'll post my reasons why I think Intel will *eventually* be forced to enter the PC business.
This is a very young industry, as it matures the FINISHED GOODS producers, in other words the PC manufacturers, will command brand preference over all component manufacturers (including Intel). There are no examples of *component* manufacturers that have commanded primary brand loyalty over a long period of time. If the Intel brand can continue to be the prime force driving consumer decisions as a component manufacturer, they would be the first ever, possible but not probable.
If/when Intel loses it's primacy in brand equity, PC manufacturers will be free to chose any cpu manufacturer, much as they do with disk drives or memory. Intel margin would/will go down. Brand equity is THE driver of margin.
We've been through this discussion before <g>, it's careless to say *never*. Intel has and is manufacturing PC's in competition with it's customers, they just are not using the Intel nameplate. IF/when the consumer cares more about buying a Compaq computer than an Intel Inside computer, everything changes. Compaq has never been Intel's best friend, and BTW, do you think Compaq or Dell or IBM are happy that a component manufacturer commands more brand loyalty than thier trademark? Do you think they are trying to change that situation? Again, the question, name ANY component manufacturer (of all the millions of products sold) that has determined consumer brand preference, over a long period of time, more than a finish goods manufacturer.
Fred, I don't believe there is an antitrust issue, there are plenty of computer makers out there to provide competition. The CPU represents less than 20% of the finished cost of the computer.
Just my thoughts, and I know that we have agreed to disagree in the past. Intel is also my largest stock holding, I believe in Intels future in part because of their brand equity, if/when they start to lose that asset I hope that they would/will respond. History is full of failed companies that didn't respond to a changing marketplace, I have confidence that Intel wouldn't be one of those companies.
John
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