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 : Intel Corporation (INTC)
INTC 36.78+2.7%Nov 26 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Amy J who wrote (81178)5/18/1999 9:13:00 PM
From: kash johal  Read Replies (1) of 186894
 
Amy,

Re "Will the USA PC crew be willing to change its philosophical strategy and mindset by putting energy onto the low-end market (or will they only do so with AOL's encouragement?)
New product developments tend to focus most energy/funds onto the higher-margin products...

...Sometimes this leaves a wonderful entry for the overseas crew (e.g. TV/PC crew) to enter with lower-margin products (since the USA tends to avoid them) which reach commodity high-volume levels, with superior ease-of-use capabilities, consumer friendliness, but unfortunately may broadside the PC crew on the low-end."

The equity structure makes it difficult for major US PC companies to go after the true low end. Companies like DELL, GTW, CPQ, HP have to show reasonable margins- thats why some-one like e-machines can flourish.

The next driver for the true low end ($200-300) range requires a recurring revenue stream to offset no profits on the hardware. It is not clear to me that the Internet ad revenue model generates enough money. Clearly the game consoles have been very successfull with the low cost up front approach - and charging very high prices for the games.

Certainly conventional PC companies cannot win in this space as their business plans are to to make margin on the hardware.

However I cans certainly see a major internet play such as AOL, Yahoo etc buy up/venture with the game console guys.

Should be pretty interesting.

Regards,

Kash
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