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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 114.23-0.8%3:59 PM EST

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To: blrmkr who wrote (4557)6/12/1998 7:55:00 AM
From: Thomas P. Friend  Read Replies (1) of 93625
 
Lance,

You are free to disagree with me, but I'm not sure you are truly in touch with what's going on out there if you do. The shift to P-II as the majority machine is just now occurring, and that's because the P-II price has been dropped to the point where it's barely more than the cost of a Pentium MMX, because of aggressive price cutting by Intel. I was at CompUSA and Computer City in Framingham, MA in April. I talked to sales clerks in each store; according to them, at that time, they were still selling mostly Pentium MMX systems.

You are right; the market place is a BIG place. And the majority of systems that have been being sold into it are Pentium MMX systems. Intel itself has been saying this for months. They have been warning about earnings and one big reason is because they have been selling too many low margin products (Pentium MMX) and not enough high margin products (Pentium II, which is rapidly becoming a low margin product).

You say these "cheap, low end" systems can run basic software. Tell me exactly which software I cannot run with a 233MHz Pentium MMX system with 32MB of DRAM. Perhaps as an Intel employee you are a little spoiled; most of us can run all of our software just fine without a P-II.

Now that the P-II competes favorably on price with the Pentium MMX, it will rapidly take over as the "cheap, low end" system, but this is a very recent development.

Some of you folks on here like to take polls. Let me ask a couple questions of the thread.

1. What processor is in the computer you are using?
2. If you work at a large company, what is the majority machine in use?
3. Is your company aggressively replacing your pre-Pentium II systems with Pentium II systems?

Regards,

Tom
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