<Only 30% of consumer PCs sold last month had slot 1>
Assuming that is true, please observe that one year ago, Slot-I did not exist. Next, travel back in time with me to 1991 where Socket-7 did not exist. Do you see a trend that more advanced CPU interface is replacing the older one?
<I have sources which indicate that they have solved the yield problems>
Please share it with us. What are your sources?
<Hence the K6-3D and later the K6-3D+, which will be priced at parity to the PII>
Where did you get this? AMD vowed to price K6 at 25% discount to Intel's products.
<"Intel is vacating the socket 7 space and giving away the Pentium market share to AMD and Cyrix">
This is a very good point, just like the socket for 486. Where is 486 nowadays? Cyrix/NSC will abandon Socket-7 to elevate to Slot-I.
AMD's advertisement without <space-suited bunnys>
I hope so. That Apple stunt is getting old. What do you think the theme should be on the up-coming AMD ads?
<AMD is selling at 2x revenues; Intel is selling at 5x. AMD was founded just a few years after Intel, and has gone through even rougher patches before. Why should they be broken up now?>
Yahoo is trading at more than 10x its revenue. Could this trend be possibly broken?
<The Pentium had no competition; the K5 was late and weak> when you bought into Intel
Well, on the contrary, at that time, there were plenty of competitions. Power PC just came out. K5 was hyped up just like K6 today. Cyrix also claimed to have processors that will take huge chunk of market share, and still make money, away from Intel. On top of that, DEC was bragging about their Alpha chip. Gee, shall I go on?
<Grove did say one year ago that in spite of a 60% gross margin at that time, he expected the long term gross margin model to be 50%>
Do you notice that despite a slight dip in earnings in Q1'98, the gross margin for Intel is still over 55%? Even with 50% gross margin, the stock value has to fairly absorb this money making might. If the stock price stagnates for a few years, Intel's cash reserve would rise to a point where this company can easily buy back all the shares.
- - -
Sorry to disappoint you, all that still do not answer my questions. In fact, more questions are raised.
Time Traveler |
