Re: Low end
<<Mark, Re: INTC refusing to develop an integrated CPU. What low end of the market are they neglecting? As far as I can see, they pretty much own all ends of the market.>>
The low end is any machine under $1000. You have to spend at least $1000 for the lowest priced Intel x86 PC. The low end is dominated by Nintendo, Sony, and Sega. They sell billions of dollars worth of machines, and Nintendo is the biggest company in Redmond, not Microsoft.
An integrated x86 CPU could bring the system cost down to $500. It could run games, productivity apps, and access the net. Andy Grove stated at the annual meeting that the market wasn't worth addressing, but it sure looks like a big fat plum to me. Larry Ellison and the NC crowd may be full of hot air, but that doesn't mean a low end x86 market can't be developed.
PCs have only penetrated 30% of the U.S. population, due to high cost. The penetration is even lower in Europe, and lower still in Japan and Third World countries. AMD already landed a deal with the biggest PC maker in mainland China to sell CPUs. Intel could shut AMD out of that market and others with an integrated CPU. By the time Intel responds, AMD could have significant revenue to attack Intel in the more lucrative markets. |
