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

To: Eric Jacobson who wrote (7351)	3/12/1998 1:01:00 PM
From: Investor A	Respond to of 11555

Don't worry about C6 performance. Most average Joe and Marry have no idea about real system performance at all. All they know is the clock speed. If they knew how to tell the real performance systems, Intel might have been out of business a few years ago.

To: Eric Jacobson who wrote (7351)	3/12/1998 1:01:00 PM
From: Rob S.	Read Replies (2) \| Respond to of 11555

That strategy has some plusses but also some minuses. Intel's overall strategy for the past few years has been to brand the uP chip. Can you think of any other electronic product you buy where the bulk of consumers are much interested in the chips inside the box? It comes into play a bit in 3D graphics cards but I can't remember ever asking what chip was used in my stereo or TV. Intel wants people to continue to think that there are dancing people inside their Pentium chips rather than just think about how the product performs. Cyrix tried some advertising - "Cyrix Instead" that netted them little. Then they finally got the formula right to allow them to produce M2s that ran cool and performed well compared to Pentiums. They also worked closely with Compaq to define and produce the MediaGX chip set that helped usher in the sub $1000 phenomena. I think the best thing IDTI can do is to leverage off their existing sales force and recently expanded PC products distribution base for the time being - until they see that production is ramping past the ability to sell the parts through those channels without some added stimulous. Then, maybe, the thing to do will be to let a Compaq or IBM brand their boxes to differentiate their product in the marketplace against the host of others who will have generic Intel or others parts in them. If IDTI has sufficient excess qty to sell to a major OEM, and the parts have lower power or higher performance per dollar, then the OEM can make a good case in their advertising. By helping to make the OEM a success, IDTI will assure first consideration for future sales. I think that advertising the WinChip is mute at this point and may even backfire. Some consumers will buy the product based on how well it performs in the showroom but may shy away if a chip other than one that they recognize is inside. Over the next few years consumers are likely to get more confused and disinterested in what chip is running their PC or other device as long as it delivers the performance they need. There will be so many choices from Intel, AMD, Cyrix, and IDTI (posibly a couple of others soon) that many more consumers will quit asking - many already have. IDTI is the low cost, small producer of uPs, that is their position and strength.