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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: Dennis W who wrote (3630)	12/14/1997 2:00:00 AM
From: Robert Utne	Read Replies (3) \| Respond to of 6570

The PC industry is scared as hell that consumers will stop buying home computers during the next decade (1998-2007). 60% of Americans don't need or want a PC even though PCs now sell for about the same price as an average TV. "TV and the telephone work just fine", most consumers say. The other 40% are tired of playing the upgrade game. Gates keep loading up his OS and other software with huge memory demands, Intel needs to push faster chips and Compaq must frequently sell upgraded hardware to keep it all together. We don't need a faster PC to read our e-mail and do our basic PC chores. If we want games, we'll buy a Sony Playstation and hook it up to the TV. And practically nobody wants the PC gizmo add ons as Toshiba and others have found out. Notice that every study on consumer demand for HDTV is based not on actual market studies of consumers who have experienced HDTV but only on those who've read about it. The only market study I've seen by consumers who have experienced HDTV (conducted by CEMA to a group of retirees)reported that after experiencing HDTV, not one person asked what it cost. They all only wanted to know when they could buy one! The PC industry is scared as hell that consumers are going to spend their discretionary income to upgrade their TVs and not buy more PCs starting next year. Intel is hedging its bets, big time, by jumping over to also join the CE industry, including the acceptance of Zenith's patented VSBi interlaced transmission system versus the progressive scan recommend by Gates. Nobody has reported this story. It's not in anyone's self interest including the CE industry, until after the holidays when the last holiday shopper has loaded up her cart with yesterday's TV tech. If you want to point out possible ZE short players, look right to Redmond as the prime suspect. Who has most to lose by a dead home PC market and wants most to win the control of the living room, too? A strong ZE (and Asian and European CE comanies) will be a much more formidable competitor to the PC industry in the battle over living room control. Once consumers experience HDTV at their local mall, airport, bar, restaurant or neighbor's/friend's house, the demand for HDTV will soar. In fact, Gary Shapiro of CEMA has stated that demand for HDTV sets will exceed supply for some time to come. As I recall, Zenith has projected a double of TV earnings from HDTV and SDTV. We ZE shareholders are sitting in the catbird seat. Come January 8 at the International CES, the HDTV wraps will be removed and the world will learn how great HDTV actually is. If I was Gates, I'd be sweating too.