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Technology Stocks : IDTI - an IC Play on Growth Markets
IDTI 48.990.0%Mar 29 5:00 PM EST
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To: Rob S. who wrote (4949)11/27/1997 1:16:00 AM
From: Gordon Quickstad  Read Replies (2) of 11555
 
Thanks for your analyses of the market, Rob. So far, Intel has expanded to a large extent by selling to the same market again and again: 8088, 80286, 80386, 80486, Pentium, Pentium II (and don't forget those SX's). Now, low end 486's are going on the scrap heap and I think a lot of corporate and home buyers are getting a little tired of rebuying their computers every couple of years. Perhaps a slow down in purchases of new MPUs is in order as has happened to HP's printer sales. HP has tried hard to not offer too much improvement too fast and put themselves out of business, but people seem to stick with their 4PPM deskjet because it gets the job done instead of buying each new incremental improvement. I would guess that when we hit the Pentium 133 class of processors that the same thing is potentially happening in processors - the 133 gets the job done - and why upgrade when there is no compelling reason.

Now, more and more, convenience is becoming important for productivity rather than just raw speed. People might want one or two dedicated applications on a processor instead of having one extremely fast processor with all applications on it. This might be using one computer for handling a small business and another for internet use and perhaps another for kids games and homework. The same division of tasks would also be convenient at work. This is where capable processors like the C6 can add the convenience desired without the high cost of just raw compute power. The C6 is a sensible solution for offering this convenience as well as an offering for the uncomputerized masses.
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