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Technology Stocks : LSI selected to make CMDA Chips for Interdigital Com.
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To: Joe Wagner who wrote (8)2/22/1996 8:56:00 AM
From: Tom Koutsky   of 28
 
Although I own INTC shares, I think Andy Grove is wrong
on the "Internet box" thing. We already have "smart phones"
(check out US Order if you're interested in that) and an
e-mail-only device does not seem too exciting. I think that
Grove still sees the Internet box as a computer product -- it
is not, it should be seen as a consumer electronics product.

There is nothing really new about Internet box technology -- the
guts of it is a Sony Playstation with an Ethernet adaptor instead of
a CD-ROM connection -- and it will have ports to attach a regular
computer monitor and keyboard. The real key is that LSI's one-chip
ASIC, which gives you 3-D graphics, Dolby sound, and MPEG-2 decompression combined with Sony's
MDEC device, will give you something PCs cannot now do -- full-screen
video playback. LSI says they can sell their chip for $50 in
volume -- that might be optimistic, but it is not unreasonable to
expect it to cost the same as a SonyPlaystation today (about $250).
No, it won't replace the PC (especially business use), but it
is a way of selling Internet access to the 2 out of 3 households that
do not have a PC and may not care to learn about SCSI adaptors,
motherboard chipsets, graphics accellerators and sound cards.
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