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Technology Stocks : Micron Electronics (MUEI)

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To: 16bit who wrote (2235)11/6/1997 6:23:00 PM
From: John Erb  Read Replies (1) of 4074
 
>>It is my contention that their is no program/software driving the market to bigger and faster machines. In the past you had software driving hardware. Programs were always pushing the hardware to the limit, so when a faster chip came out, there was instant demand. Currently, hardware is ahead of software. I don't know of any reason for the AVERAGE user to need anything greater than a Pentium 200. <<

As a corporate computer purchaser, interested industry observer and fanatic computer user, I totally agree. The next program/software that will drive people to faster hardware will be voice recognition, streaming video/audio, and 3D effects in all manner of programs. Since these technologies are in their infancy, and since people are still getting used to *multi-tasking*, e-mail and groupware, all of which can easily be handled by low-end (nowadays) machines, there isn't the demand for the bigger iron. Hence, IMO the trend toward the <$1K box.

One source of sales that has not been explored enough (except by ALR and half-heartedly by Gateway) is what I'd call a transition box. This would be a box with the latest processor and chipset, PCI, perhaps video-on-board, power supply and case (no OS, RAM, keyboard, mouse, HD, cards, etc.). The user could then move all his existing components over to the new box and get the processor boost for a minimal investment.

Now the pundits say that you might as well get everything new because all the components have to be tuned up to work at lightening speed with each other, but I say that's crap. I'd buy such a box today, to move from my poor 90MHz to a Pentium II with a 440 chipset. I'd buy twenty for my office. And I'd upgrade those older, poor, slow components at my leisure.

The benefit of this, to Micron or whoever else would do it, is that they'd get a foot in the door with the customer. I buy Dells for my company, but I'd buy Micron transition boxes for $1500 or so. And when I need new, completely configured systems, if I was happy with the transition box's performance, I might switch to Micron.

This makes complete sense to me, but I am a buyer only, and so I probably not completely circumspect on the matter. I am sure that the margins and market for this type of thing might simply just be too thin to warrant. But I sure am sick of buying all this new stuff when I've got most of it already (HD, RAM, OS, mouse, KB, etc.)
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