Willie,
Don't count Intel's diversified products which can not make enough money.Intel stock price dropped below $50.00 (before split) without strong competitors in January, 1996 but Intel does have strong competitors today. So Intel' stock price is possible to drop below $50.00 again in the near future. If you look at Intel, you will find out what is wrong with Intel.
A. Intel already made mistakes in diversified products of low profit margin (if you read my posts) in the past but fortunately, Intel had monopoly CPUs covering the products.
B. Unfortunately, Intel doesn't have monopoly CPUs today and Intel is going to continue the same mistakes that it made. I don't see Intel to abandon low profit margin (can't make enough money) products, like motherboard, flash memory, networking...etc. The more over, Intel will involve low end sub $1,000.00 PC and $500.00 NC. Investors can't see Intel's old growing business model. How can investors expect Intel to grow like used to be?
C. Intel will makes another mistake(P II without an on board cache) next year. A friend of mine, who was a very experience sales manager of computers, told me, "If competitors has cache and Intel's Pentium II doesn't have any cache, it will be tough for customers to accept Pentium IIs psychlogically - not the reason for only 10% slow." Except Intel can wash coustomers' brain to accept Pentium II without cache.
Here is a news of Intel's networking hardware sales which will disappoint you but you have to accept the reality.
INTC only takes 6.5% retail placements in Networking Hardware Market while Linksys Leads Intel by Over 26 Percent!
Business Wire - December 22, 1997 17:16
IRVINE, Calif.--(BUSINESS WIRE)--Dec. 22, 1997--
Now With Over 30 Percent Of The Retail Shelf, Linksys is Continuing
Its 10 Year Push to Grow its Placements in the Network Hardware
Market, Edging Out Former Industry Leaders Intel and Once Again,
3COM; Linksys Honors CompUSA For Their Contribution To Linksys'
1997 Retail Success Linksys, a leading provider of networking hardware
solutions for the small office/home office (SOHO) and small/medium business (SMB) markets, continues its strong hold lead of the retail network market.
Linksys continues to lead with 32.6 percent of national retail shelf placements, a 19.1 percent increase over last year's data, according to HOT Market Monitor, Network Interface, November 1997 study by Personal Technology Research (PTR), Framingham, Mass.
Linksys has successfully achieved 32.6 percent of placements, leading 3Com Corp. (Nasdaq:COMS) who dropped, and is now at 21.6 percent. While Intel (Nasdaq: INTC, at just 6.5 percent retail placements, is over 26 percent behind Linksys. In addition, the November 1997 research indicates that the Linksys' Ether16 LAN Card, and 3Com's Fast EtherLink XL PCI card were the most widely distributed models, with an average price of $41.45 and $114.29, respectively.
Through computer superstore, CompUSA (Nasdaq:CPU), Linksys has seen a 66 percent increase in shelf space over the previous 12 months, in addition to a 31 percent increase in revenue, according to information provided by both PTR and Linksys. This week Linksys honored the retail giant with their 1997 Retailer of the Year Award at CompUSA's Dallas, Texas headquarters. Linksys has maintained its leading position in the retail market for the past year, consistently increasing its market share rate over the same period. As a leading vendor in the retail networking market for the past 2 1/2 years, Linksys has seen tremendous growth with the addition of 10 new retail accounts in the previous 12 months alone, and more in the planning stages.
"The quality of Linksys' products leaves one to wonder why anyone should pay more for another brand," stated Scott Hess, Senior Integration Consultant for Sarcom. "Linksys' products are very reliable, and they're plug-and-play, so your worries are over."
Linksys attributes much of its retail success not only to their ability to anticipate market trends, but also to their commitment of educating both retail sales staff and customers alike. The award-winning "How To" series of easy-to-understand brochures and in-store signage, in addition to the company's informative Web site, has allowed both customer and sales associates to take what was once thought to be a highly technical area of computing, and made it far less intimidating. Innovative products such as the Instant Ethernet Series, Network in a Box, and winner of PC Magazine's Editor's Choice Award (Sept. 23, 1997), the Network Starter Kit, have both helped ease the categories' perplexity for first time networking customers.
About Linksys Founded in 1988 and based in Irvine, Linksys is the fastest growing network hardware solution-providers among VARs, resellers, and system integrators for the SOHO and SMB markets. While designing, manufacturing, and marketing connectivity products for desktop and notebook computers, Linksys' dedication to "Making Connectivity Easier" allows the company to extend its Ethernet,
Fast Ethernet, Internet solutions, and other connectivity products to both novice and experienced users around the world. For more information, visit the Linksys Web site at www.linksys.com, or call toll free 800-LINKSYS (546-5797).
Ranked by Inc. Magazine as the 56th fastest growing privately held company in California, Linksys is a leading manufacturer of networking products and Ethernet based solutions. Linksys has a ten-year history of award winning products in the networking environment.
With headquarters in Irvine, Linksys sells to OEMs, and distributors, such as Infotel, Ingram Micro (NYSE:IM), JMR Distributors, Merisel (Nasdaq:MSEL), MicroAge (Nasdaq:MICA), and Tech Data (Nasdaq:TECD). Retailers like Best Buy (NYSE:BBY), CompUSA (NYSE:CPU), Computer City (NYSE:TAN), Egghead Software (Nasdaq:EGGS), Elek-Tek, Fry's Electronics, Future Shop (Vancouver:FSSV), Office Depot (NYSE:ODP), Staples (Nasdaq:SPLS), and T-Zone, in addition to two subsidiaries in Europe, and Japan. Linksys, Instant Ethernet Series and Making Connectivity Easier are Trademarks of Linksys. All other products and company names mentioned herein may be the trademarks of their respective owners.
CONTACT: Linksys, Irvine
Robert M. Adams, 714/261-1288, Ext. 2251
E-mail: radams@linksys.com
or
Angie Tucker, 714/261-1288
E-mail: atucker@linksys.com
Best wishes
James |
