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Technology Stocks : Intel Corporation (INTC)
INTC 35.10+2.3%Nov 19 3:59 PM EST

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To: Mo Chips who wrote (54291)4/23/1998 7:00:00 PM
From: BelowTheCrowd  Read Replies (1) of 186894
 
As I said elsewhere, ASPs are dropping because there is a whole new groups of users who are willing to buy "last years technology", which is always a lot cheaper than this year's and always has been.

Price cuts have always been a fact of life in this business. What has changed is that in the past nobody wanted to buy an 18 month old processor design because it probably wouldn't support the current software offerings. These days lots of people with minimal needs are finding out that the basic software of 2 years ago, running on the basic hardware of 2 years ago, is perfectly fine for them. This will continue until the industry gives even basic consumers a reason to move to the next level.

My guess is that the next big move CAN'T happen until the various telecom infrastructure people do some thing to provide more bandwidth to the home. That's why people like Paul Allen want to get into cable TV. It's not so much because it's a great industry NOW, but rather because they'd like to shake out the dinosaurs and move our telco infrastructure out of the 19th century...

mg
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