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To: gnuman who wrote (42216)12/14/1997 3:07:00 PM
From: Paul Engel  Read Replies (1) | Respond to of 186894
 
Gene - Re: "While not a lot of bearing on either earnings or proftiablity, it could increase Intel leverage for their other businesses."

You have only touched on the importance of Intel's graphics effort.

By having a viable graphics tecnology, Intel can tailor the chips to new applications - and PROVIDE THESE COMMENSURATE with their new processor offerings. This will allow Intel to provide more (and more) of the TOTAL PC solution.

For example, Intel's i740, offered with the correct pricing, can accelerate adoption of the AGP port, hence the adoption of Slot 1, hence the conversion to Pentium II, Dechutes, etc.

The i740 (or a variant) could then be combined with a chip set, providing a high performance integrated subsystem for sub $1,000 PCs - again, making a proprietary INTEL standard for this platform.

A similar merging of the i740 with a Mobile Chip Set can boost notebook computer sales, giving them all the horsepower of desktop systems.

The graphics component is a key linch pin in getting a larger percentage of all PC costs going to Intel's revenue coffers - and NOT to other competitors.

Paul