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Technology Stocks : Compaq

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To: John Biddle who wrote (17447)2/15/1998 5:24:00 PM
From: John Koligman  Read Replies (1) of 97611
 
Bill and John,
A short time ago I had asked a respected poster on the Intel thread what he thought about Alpha giving Merced a run for the money. His response follows, I found the volume number telling, in that we are not talking about a large number of chips here in comparison to what Intel will sell when Merced is released....

Subject: Intel

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To: John Koligman (47086 )
From: Paul Engel
Tuesday, Feb 3 1998 10:26PM EST
Reply # of 47900

John - Re: " I'm interested in your thoughts on the possibility that Compaq might keep
Alpha alive longer than expected due to the fact that Mitsubishi and Samsung also
manufacture the Alpha,"

They will keep it alive only as long as their customers request it.

Remember - DEC sold about 275,000 Alpha systems each year for the past two
years.

That means DEC and Samsung and Mitsubishi can now go kill each other and divide
up the 275,000 Alphas among the three of them.

Do you think these guys will stay in business to sell 90,000 chips per year per vendor?

Intel makes 90,000 Pentiums about every 9 hours!

You can complete the economic significance of this comparison.

Paul

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