C-Cube Message Board - Msg: 3435831

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Technology Stocks : C-Cube

CUBE 36.22

+1.2%

Dec 17 3:59 PM EST

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To: Cameron Lang who wrote (29506)	2/14/1998 8:57:00 PM
From: Stoctrash	Read Replies (2) of 50808

And the caption "We're blowing up the OEM structure," claims C-Cube Microsystems' Chief Executive Alexandre Balkanski splashed under a picture of himself. It seems a bit arrogant. Why offend the established OEMs? Why?... because they, the OEM's, want to control the whole process. Alex is saying, we're BLOWING up the OEM structure cuz if you use his chips, the barriers to entry are lower. This causes the OEM's to have the; "shit or get off the pot" syndrome. Either they find another source of chips or ideas to cut costs OR give in and buy integrated chips from their favorite fabless chip maker. Alex knows that DVD retail prices need to come down so that volumes will crank up.(both CE and PC based) If the OEM's aren't interested in getting cheaper DVD out the door, then those holding the keys will find another route. I don't know if I'm right about this,,but thats the way I see it.

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