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Technology Stocks : Diamond Multimedia (DIMD)

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To: Jonathan Quick who wrote (27)9/12/1996 8:48:00 PM
From: Ernie Onate   of 99
 
Johnathan,

If you followed the video graphics market back when ATI used to reign, you would know that Number Nine and Hercules were never ever close to beating Diamond's video cards utilizing the same part (ie. S3, Cirrus Logic, Tseng, Weitek, etc)

The real comeptition came from ATI and Matrox who manufactured and developed their own chips. True Diamond would benefit more with in-house development but that would raise R&D costs and also raise the prices of their video cards. You'll notice the slow development of ATI and Matrox product lines. Most of their products are expensive because the need to recoup their development costs. Diamond markets faster or relatively equal performing cards at a much lower price point.

Ernie
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