Steve, Re: "While Celeron(the new version) is going to impact AMD, I believe that it will impact Intel just as much."
You need to go read about Intel's segmentization strategy, you know, the four separate product areas which are intended for four different markets (of course with some overlap). I believe Intel has a very high priority on this strategy, i.e., to not let one segment cannibalize any others. I listened to and took notes on the recent conference call, and so far it's working, according to Paul Otellini, with all four segments pulling their share, plus. This is also continuing into 4Q98. You can't argue with those 3Q numbers. Of course, it doesn't hurt that Intel is the overwhelming market leader, and so many customers are going to take their lead without much question. BTW, checking Gateway's earnings release last night, GTW and Dell, all Intel so far, are also the most profitable of the box makers. Any cause and effect here?
You know, speaking of Dell, sometimes, we have to acknowledge that a company has come up with a unique and successful overall company strategy. When it happens, it's refreshing, vs. so many companies that do nothing but be reactive, instead of proactive. The subsequent flailing and thrashing can be quite comical but also pathetic.
Intel is being proactive with product segmentization and it appears to be working.
Tony |
