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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: Harold Engstrom who wrote (7185)	3/5/1998 8:19:00 AM
From: Jim Oravetz	Read Replies (1) \| Respond to of 11555

Harold, ditto on PC sales comment. The sub-$1k PC market is expanding at Intel's expense. The average Joe/Jane doesn't care about the "Intel Inside", only the price. Here is a link to the newly named Intel CPU that will compete with the C6 and others. techweb.cmp.com Jim

To: Harold Engstrom who wrote (7185)	3/5/1998 11:48:00 AM
From: Rob S.	Read Replies (1) \| Respond to of 11555

A recent article in Computer Reseller News (www.crn.com) indicates that sales of PCs are booming in quantity because of the sub $1000 sales. This is said to be helping sales of peripherals and software. However, as CPU prices come down, there is increased price pressure in HD drives, memory, and most other product areas. What is hurting Intel is the much lower price and loss of sales in the sub zero sector. It is starting to eat into their sacred cow business market in addition to being a home/SOHO consumer phenomena. The basic reason is sub $1000 or $1200 systems do just fine for most desktop applications and all sleek marketing in the world won't disuade the bulk of the market from going in that direction. IDTI is in a good strategic cost position relative to its competitors. The problem remains ramping production to "significant" quantities. CEO Perham said he considers 10%+ of overall sales to be significant - which is supposed to happen this quarter. The C6+ reportedly will have similar cost to manufacture as the C6. Although it has more circuits, it will be produced at 0.25 um which will keep the size to sub 90 mm. The C6 shrunk using 0.25 (or 0.28) design rules will be very small. The C6 may have extended life because it will move up in Mhz. The C6 225+ would be profitable if sold at $50. The C6+ should be competiton to the mid range PII's and should get a significantly higher price than the C6. It will be an interesting next few months and there is bound to be a lot of turmoil caused partially by tightening margins at Intel.