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Technology Stocks : Transmeta (TMTA)-The Monster That Could Slay Intel -- Ignore unavailable to you. Want to Upgrade?

To: Thomas A Watson who wrote (199)	10/28/2000 1:15:24 AM
From: axp	Respond to of 421

Thomas A Watson got it right on, IMO. Not only that, in the laptop market the big bright screen displays are becoming just as about as much of a battery drain as the processor. This wouldn't apply to PDAs, but the non-WinCE PDAs already have acceptable battery life. Transmeta had a good idea and the initial performance benchmarks looked good. But a lot of the initial promise hit the hard wall of reality when they tried to run real x86 OSes and applications. The current performance of x86 chips is the result of years of incremental performance gains in the chips, compilers, OSes, apps, buses, and memory subsystems all being tuned against each other in a "virtuous cycle". On the other hand, whether they can make money or whether this will be a good investment is a different question that depends on a lot more than an evaluation of the technology.

To: Thomas A Watson who wrote (199)	10/28/2000 11:18:06 AM
From: MarkR37	Read Replies (1) \| Respond to of 421

Thanks for the response Thomas. Here is how Christensen defines a disruptive technology: "Disruptive technologies bring to a market a very different value proposition than had been available previously. Generally, disruptive technologies under perform established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value. Products based on disruptive technologies are typically cheaper, simpler, smaller, and, frequently, more convenient to use." It is a very difficult task for an established firm to compete against these types of innovations. Typically, the established firms will retreat up the value chain and make faster, higher margin, products. This does not mean that Transmeta will be a great investment. But they will not have to take on Intel as AMD has done. They will be able to attack from below and try to develop their own new markets with this product.