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Technology Stocks : Intel Corporation (INTC)
INTC 48.76+10.9%Jan 28 3:59 PM EST

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To: Shibumi who wrote (3185)9/8/1996 6:57:00 PM
From: Harry Landsiedel   of 186894
 
Re: "The troubling aspect of Intel (as with almost any company) is what the ***NEW*** strategy will be when this one wears out."

I am willing to bet that someone asked this same question about the "internal combustion engine" in about 1920.

And the answer was the same then as it is now. What is the economic alternative? As I see it there is not a good economic alternative to the microprocessor as there has not been a good alternative to the internal combustion engine. There are better systems but they are not economic.

To me Intel's dominance of the microprocessor market is as much economic and marketing as it is technical. And that part has been missed by Wall Street. When a fab costs upwards to $2.5 billion and marketing "partners" have spent $2 billion on the "Intel inside" campaign in the past few years, those are mighty big barriers to entry. Don't you think?

HL
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