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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Cameron Lang who wrote (29506)	2/14/1998 2:41:00 PM
From: J Fieb	Read Replies (1) \| Respond to of 50808

Here's a box.maker that will have specially configured PCs in Radio Shack in March. Any chances for the new graphics/DVD card in these?(Probably old news) Compaq Overtakes IBM As RadioShack's PC Supplier (01/28/98; 5:54 p.m. EST) By Doug Olenick, Computer Retail Week Compaq accomplished a longtime goal Wednesday by supplanting IBM as the exclusive supplier of PCs to RadioShack. RadioShack and Compaq jointly announced a three-year deal under which Compaq will sell a uniquely configured line of Presarios through the 7,000-store RadioShack chain, starting in March. RadioShack also will carry Compaq monitors and accessories. "We've been looking for years to get into RadioShack," said Michael Larson, Compaq's vice president of marketing. "This fills out our distribution strategy." Many of RadioShack's stores are located in smaller markets not covered by the national computer superstore chains, he explained. The Compaq products eventually will sell via the same store-within-a-store concept the chain uses for its Sprint telecommunications products. The initial product mix will sell off the shelf and include three PC SKUs following a good-better-best strategy, with the "good" model carrying a sub-$1,000 price tag, said Dave Edmundson, RadioShack's senior vice president of marketing and advertising. RadioShack chose to cut its ties with IBM because "Compaq has the right product at the right time and right price, and consumers find it attractive," Edmundson said. Radio Shack will continue to sell IBM merchandise at existing prices, rather than hold a fire sale, said Leonard Roberts, RadioShack's president. RadioShack expects to sell out of IBM products by March.

To: Cameron Lang who wrote (29506)	2/14/1998 8:57:00 PM
From: Stoctrash	Read Replies (2) \| Respond to of 50808

And the caption "We're blowing up the OEM structure," claims C-Cube Microsystems' Chief Executive Alexandre Balkanski splashed under a picture of himself. It seems a bit arrogant. Why offend the established OEMs? Why?... because they, the OEM's, want to control the whole process. Alex is saying, we're BLOWING up the OEM structure cuz if you use his chips, the barriers to entry are lower. This causes the OEM's to have the; "shit or get off the pot" syndrome. Either they find another source of chips or ideas to cut costs OR give in and buy integrated chips from their favorite fabless chip maker. Alex knows that DVD retail prices need to come down so that volumes will crank up.(both CE and PC based) If the OEM's aren't interested in getting cheaper DVD out the door, then those holding the keys will find another route. I don't know if I'm right about this,,but thats the way I see it.