SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Oak Technology (OAKT)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: slob who wrote (4145)9/22/1998 12:35:00 PM
From: Rishi Gupta   of 4335
 
Slob,

It is clear from your description of OAKT's business, you know as well as any OAKT management member does. And your comments are correct.

It is true, if OAKT can continue the micro dominance in CDROM controller, they should do so and obviously they tried to do so except the result is less than desirable. Why?

Because they are successful, it attracted a lot of new comers. And there indeed were new suppliers---copycats and so on---then the prices dropped---it became commodity. In short, the technology barrier is not so steep. The patents are not so many-faucet as to provide enough protection. Plus perhaps blatant abuse of reverse engineering on OAK's patents all in the name of benefiting the consumers, you and me!

And the selling prices dropped from above $10 to below $5.00. If you are the CEO, what can you do? Diversify in some other "remotely related" products development. Right? The results show it was wrong!

Almost no companies in the fabless area have shown a successful transition from one area to another and still successful. Intel has been notoriously successful in focusing on CPU development. They attract AMD, National and IDT now but the microprocessor is far from a commodity item yet.

Well, there is no solution for OAKT. They can only work harder to deliver better CDROM controller and cost less to them so they can remain competitive. AND they have to continue investing in other new risky product development to spread their bets.

Do you have better strategies? Clearer directions? I think OAK management would love to hear from you if you do.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News