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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (52674)	4/10/1998 2:35:00 PM
From: Larry Loeb	Read Replies (3) \| Respond to of 186894

Paul, You know I hate to disagree with you, but: 1. Usually killer app refers to an application that is so attractive that most users will want it and many non-computer owners will feel compelled to buy a computer to get it. Lotus 1-2-3 was one of the first of these. 2. Until a killer app appears that will soak up all of a Pentium's processor power, a major upgrade cycle seems unlikely to occur. That having been said: 1. You are right. There are a number of programs that require massive amounts of processor power. These are usually associated with specific segments of the market. It is possible that all segments will eventually have applications that require upgrades. 2. Intel is using many of their venture capital investments to encourage the development of applications that provide a richer experience (and utilize all of a processor's power). Right now there appears to be a risk related to the minimal performance improvement available between the zero segment and the high end when utilizing mainstream applications (spreadsheets, word processors, browsers, etc.). This situation is similar to what has happened several times before. For example, when Intel came out with the 486 it was believed that users would stick with the 386 and that the 486 would only be used for workstations and servers. Windows 3.0, however, worked much better on a 486. It is unclear to me what, if anything, will drive upgrades to Pentium II 333 Mhz systems (and beyond). I even give credence to the possibility of a paradigm shift away from the PC towards application specific devices. What is clear is that the PC has yet to come close to the simplicity of other electronic devices. Any such enhancement will, IMO, will require large amounts of processor power. Such enhancements could include voice and/or hand-writing interfaces and operating systems that are significantly more stable than Windows95. I retain my investment in Intel because I believe that such applications will arrive. Paul, I would of course be interested in your thoughts (as always). Larry