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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Saturn V who wrote (124178)	1/5/2001 6:27:06 AM
From: Amy J	Respond to of 186894

RE: "But the difference is that Intel will also be entering the market this time in consumer space, competing with the people who will be potential users of the Intel chips. This can embitter relations, causing that user to line up with Intel's competitor like AMD, Transmeta etc." --------------------------------------------------- When you're as large as Intel, growth is bounded by the market size of the industry. Growing the industry becomes very important. About your point, Intel probably assumes it can successfully compete head-on with chip competitors when the players in these new markets select their vendors - vendors are looking for the best, competitive components. Intel doesn't shy away from competition, but meets competition head-on. RE: "In addition how easy is it to exit a market without hurting the Intel Inside brandname ?" There are many ways to stimulate markets and grow an industry, that does not necessarily imply Intel has to come out with the product (which is where the risk to brandname exists). However, in cases where Intel opts to stimulate demand by a release of their own product (with their label) in a new market, one of two things happen: the market eventually grows large enough or it doesn't. If the market grows large enough, maybe it's a good thing Intel entered it. Anything less than a billion would not be large enough for any large company, but an okay market size for a smaller company (in the venture community, a $1B is the minimum market size requirement). In the later case, customers may be migrated to another company, at which point, the brandname does not transfer over to the buying company. The customers have a home, the market has been stimulated, and the Intel brand is protected. Intel can move on to the next thing. RE: "Intel's entry to the MP3 market might legitamize it, creating more sales of other MP3 players increasing the demand for flash memory." MP3's are very popular with the folks that graduated last year. Fun stuff. Regards, Amy J