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Technology Stocks : CRUS, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Calvin Scott who wrote (5361)	3/20/1998 12:02:00 PM
From: Bosco	Read Replies (2) \| Respond to of 8193

Dear Calvin - regarding PII/333 price cut, it will certainly increase the pressure for the whole x86 market; however, CRUS, SIII etc may actually benefit from the increase production (sale driven) of the box makers. Sure, the box makers may demand some concession from the component makers, but the decrease of the CPU price, still one of the costiest component of the box, will actually lend some reduction of pressure as the box maker's margin can be tempered by INTC's move. JMHO rgds Bosco

To: Calvin Scott who wrote (5361)	3/20/1998 1:35:00 PM
From: Synapsid	Respond to of 8193

Well, the way I look at it Intel is taking the lion's share of chip revenue and profit from the average PC. It would be good to see some of that profit shift to peripheral chip suppliers. Of course, this is precisely what Intel tries to prevent in every possible way. At least the fast transition to PII-based PCs in the corporate market helps Cirrus' PC product revenues in the short term, even though the margin on the CL-GD5465 AGP graphics device is apparently not that great (apparently because of design, not price). Another news item, Rockwell warned of increased price pressure for V90-based modem chips going into the next few quarters. Who is competing here? Is Cirrus playing a role? I believe Cirrus has some opportunities in this area.