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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: stock talk who wrote (9102)	1/29/1998 11:54:00 AM
From: stockroach	Respond to of 14577

Frankie, What you state has alot of truth, but Intel manufactures motherboards and this will give them the opportunity to sell their graphics chips. Dell , Gateway, Packard Bell are just a few of Intels motherboard customers. So pretty much out of the gate they can get a good chunk of whatever market this chip(s) will be targeted for. Like I stated before they want products with as many functions done in software as possible so they can keep developing and selling faster CPU's. This does not bode well for the S3 Vortex. If the product was shipping now it might have a chance to get market share but the software based products are catching up fast. Frank - What assets does S3 have that is worth 500mil. Please explain? Would'nt the market recognize this? Don't include GJ private plane. 8 -) stockroach

To: stock talk who wrote (9102)	1/29/1998 6:16:00 PM
From: Mark Chavez	Read Replies (2) \| Respond to of 14577

Frank - I think what has given AMD and Cyrix their opening is that the low end processor chip is really all you need for current applications. Heck, I can upgrade my home system with 166 MMX class CPU and motherboard for under $250 installed. There is no current reason to go any further, and is one reason why the prices have fallen so dramatically. If I had one thing to wish for, I'd go for a faster internet connection rather than a faster processor. At some point, fast enough is simply fast enough, a lot of applications are reaching that point(can you say commodity?). I think the useful lifetime of a 166 MMX chip will be extremely long. That's intense pressure on Intel's margin. I agree that nobody wants to buy from a company that has a monopoly, that's a given. I also agree that all alternatives would be received favorably. With the "branding" of the boxmakers (HP, Compaq, IBM, etc.), Intel is faced with dreaming up reasons for the average user to upgrade to PII. The commercials say PII is the greatest, the best, blah, blah, blah, but who really needs a PII? Not too many now, not too many in the near future, which is a huge concern for Intel. I would bet that a S3 high end graphics chip (w/ Faroudja) and a non PII Pentium class chip will(hopefully) be more cost effective and faster than a high end Intel PII w/ a decent graphics chip running digital video via software. However, the typical user is brainwashed with Intel, "use Intel or else". Right now, "or else" really means get an AMD or Cyrix for faster and cheaper. Because of marketing, most people were willing to pay the premium for an Intel processor. Certainly, that is not the case for the <$1000 crowd. It's interesting to say the least, Intel better make damn good commercials... Mark.