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Technology Stocks : Intel Corporation (INTC)
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To: Pigboy who wrote (37233)10/22/1997 5:05:00 PM
From: Paul Engel   of 186894
 
Pigboy - Re: " what your thoughts were on 3D being on the motherboard "
3D is complex and there are constantly evolving ways to do this - with new chip sets, with software, etc. Thus, to incorporate this function on a motherboard is too risky. The chance of selecting the "right" 3D implementation is slim (or none). It is best left as a "plug-in" option.

As for Intel/CHIPS/3D, Intel's AUBURN Chip is late - I think that it is getting a speed enhancement - it was initially implemented on an older process and pretty much convinced Intel why they don't use that process for CPUs anymore!

As for Compaq and the "Build-to-Order" concept popularized by Dell - yes, this presents problems in manufacturing and scheduling. However, Compaq & Dell can't have everything their way entirely. Generally, these companies place LARGE CPU orders with Intel and then periodically they "request" release shipments against these orders - that is, they don't receive 2,000,000 in one shipment.

The large order helps Compaq/Dell to get a lower unit price. Thus, Compaq will still have to "commit" to Intel for a minimum purchase level in order to keep their volume pricing discount.

Another factor in Intel's favor - ONLY INTEL has the capacity - financial and manufacturing - to support making and holding a large CPU inventory for their customers. This concept will effectively eliminate AMD and Cyrix which have much smaller and less predictable manufacturing capabilities and MUCH SMALLER financing available to them so thatthey cannot build product and sit on it very long waiting for a Compaq purchasing agent to call.

Paul

Paul
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