Leo, sorry for the misinterpretation but the original message had intended sarcasm.
Whether convergence is the right word or not, DVD stands to increase the functionality of the TV/PC. By maling avaible music soundtracks, movies, and PC games and interactive programs on one medium, the demand for high fidelity systems, high resolution TVs and PCs will be increased. As more of these systems are sold, the demand to own the content will increase. Coupled with lower manufacturing costs, it behooves all the industries involved to make it a success.
One example of how to increase the demand without jepeordizing current products is to put content out on the DVD format in advance of other formats. In addition, it probaly makes sense to subsidize the DVD product in order to profit from the increased sales of complimentary products.
Having said this, the only ones concerned about the semiconductor companies making billions are the semiconductor companies. In other words, just because the technology is succesful doesn't mean that all involved in the technology are successful. So it comes down to whether you believe that semiconductors are inherently a low margin business.
I appreciate your concerns but if making money was that easy for the hedge funds we would all be investing in them. Last I checked, most hedge funds have underperformed the market indices the last few years. Also note that most mutual funds underperform the market indices despite their crack analyst teams. If you do have a crystal ball, there is more money to be made at the race tracks. |
