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Technology Stocks : Intel Corporation (INTC)
INTC 45.51+10.7%Jan 9 3:59 PM EST

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To: Shibumi who wrote (3265)9/11/1996 2:18:00 PM
From: Paul Engel   of 186894
 
Mark - Re:" what is it that has the potential to have a PAM of 90% or more..."

Intel is not doing "nothing". I'll give you my example. I use my PC for FAX, Voice-Mail/Answering machine, CDMUSIC PLAYER, MODEM/Internet Connection as well as standard and not-so-standard PC functions.

The communications card I have handles ALL theses functions, using a rather expensive DSP chip (IBM). It works quite well performing all these functions, which almost any household can use.

Intel's new MMX instructions will eliminate the need for this DSP chip, requiring just an A-D/D-A chip to handle the analog functions along with some glue logic. This MMX enabling technology will provide PCs with additional communications capabilities that ALL homes require for minimal cost. This is a step in the right direction.

Today, Microsoft announced a new product - Picture It! - aimed at the household/photo market - an MMX enabled software product. (MMX is used for speed enhancements but not required, I believe). Another example of a tool/ability that will entice homes to use the PC in non-traditional computing applications.

Intel has developed the AGP port for FAST graphics applications, and next year will introduce the AGP in computers, along with new 3D graphics accelerators that they are developing with Lockheed/Martin. I can't project the cost of these, but if they are technically successful, Intel has the manufacturing prowess to cost-reduce these to make them "affordable". Bear in mind - a $300 FAST graphics card is expensive, but so is a $200 - $300 stand alone game machine that does only one function - play games.

Regarding children - I'm gald your kids are taking to the PC so readily. I assume this is because their father uses one. I have a similar situation with my son (8 years old) who is getting precocious, already trying to modify my autoexec.bat and config.sys files so he can use his programs.

These kids are the future of computing, but my guess is that they represent a small (<30%) percentage of children today. They are quite privileged, if I may use that term. I'm sure the kids in Bedford-Stuyvesant, South Central LA, etc. consider it a good day when they can get to school and back without getting mugged, let alone have an hour in a fancy computer lab in school.

Further on Intel - Their entire corporate survival is based on an expanding PC market. I don't worry that they are asleep at the wheel. Also, the entire Wintel Machine (Microsoft, Intel, Compaq, Dell, Gateway, Borland, Symantec, Corel, SIII, ATI, Diamond Multi., etc.) have a vested interest in expanding this market. So Intel has a lot of helpers.

Paul
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