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

To: David S. who wrote (44200)	1/6/1998 7:52:00 PM
From: Joe NYC	Read Replies (2) \| Respond to of 186894

David, But perhaps you are right, there may be some jealosy about Intel's rather prominant recognition and they want to say to themselves that you are buying Compaq not Intel. I bet boxmakers hate to include the famous "XXX computers feature Intel Pentium processors" line. It distracts from their message. Since everybody has to do it to get equal amount of change back from Intel, it amounts to Intel forcing companies to advertize Intel brand through their monopoly position in the marketplace. (A possible new DOJ investigation?) A leader like Compaq don't like this kind of dependence. It may be one reason not to use Intel processors, even though they could get similarly performing Intel processors for similar price. Notice that in almost every category where there is a non-Intel, comparable chip, Compaq went with non-Intel chip. Joe

To: David S. who wrote (44200)	1/6/1998 8:01:00 PM
From: Road Walker	Read Replies (3) \| Respond to of 186894

David S. (1), About a year ago, I made an argument on this thread (Fred F. are you still reading) that EVENTUALLY, the finished goods manufacturers (the box makers), would win the brand equity in the PC product category, as they have in every other consumer category. At the time, I asked the question, can you name any other component manufacturer that commands more brand loyalty than the finished goods manufacturer. Never got a satisfactory answer. Of course the box makers are going to strive to be THE BRAND, until they get to that point, they can't command a brand premium, they really can't control their own future. As long as the consumers main concern is to buy a Pentium rather than a Compaq, they have secondary brand consideration, and are subject to increased price competition. If somebody else is selling a pentium for less, and that is the consumers main concern, they will comprimise on the secondary brand (Compaq). Compaq seems to be particularly irritated with this situatation, to their credit as a company. I still think Intel and Pentium are more important brands to the consumer. I believe Compaq is making another strategic mistake. I also believe that eventually, the box makers (finished goods) will win the consumer's loyalty, and will benefit from the premiums that Intel currently enjoys. John