Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (82004)	12/3/1999 9:52:00 PM
From: Bill Jackson	Respond to of 1574096

Jim, I think Dell and Gateway were forced into the low end market as the numbers in the high end market stopped increasing and the low end marched up. In addition Compaq became more aggressive at the high end as did IBM. Remember, Dell and Gateway are bringing screwdriver shop tactics to the lower end. They both sell custom configurable boxes and try to make 20-30% margin on them. You can walk into a screwdriver shop and get a custom box in an hour or two(more if you want a long burnin) with any parts you like. They can beat dell and gateway easily by 10-15% and they use standard parts so new power supplies etc are easy to get and low in cost. So Dell and gateway will not find it easy going. the only Ace in the hole they have is bundled OS and other shovel ware stuff to give away with the box. Dell and Gateway get that product for 50% less than the SD shops. Even the all in one mobos, with sound, video, network etc all on board can be bought by the SD shops and put into a small footprint case to make a very low end box. VIA will make an entry to this arean soon with mobos for the SD shops at very low costs. $125-175 for an all in one mobo is quite cheap. Add case, PS, KB for $50 and HD/FD/CD for $150 and you have a box for $350-400 hat runs at 400+ Mhz. that will dent to low end and make it hard on Dell etc. Of course they can buy the same mobo, but they have higher costs than the SD shops. The Athlon will be in a socket soon and will be made into a higher end all in one mobo as well. So we will see a real donnybrook. Intel will have no area with a sole source CPU at all, even the Xeons will fall by midyear(maybe) So Intel must crash to earth as ASP falls. Still a money maker, but not as big a money maker that will command such a high SP. Bill