To: Barry Grossman who wrote (55843 ) 5/20/1998 9:08:00 AM From: gnuman Respond to of 186894
Recent Intel statements, between the lines? Some of the statements attributed to Intel's Paul Otellini at the PC Tech conference seem a little foreboding. From C/Net "Otellini also used the occasion to implore PC companies to expand their product offerings and seek out growth opportunities. For too long, PC manufacturers have been content to steal market share from each other and concentrate on cost cutting as a way to improve the bottom line, Otellini said." (Gee, sounds just like a commodity business). "The market has changed, however, forcing computer vendors to focus on volume sales and market segmentation." (Help me out here. Is focus on volume a change for the PC industry? What segmentation is he referring to, Business, SOHO and Home PC's. Or maybe Sub-0's? But those aren't really new segments. Sub-0 is an Intel coined term for a lower priced segment, but the entire PC mix has come down in price). "If the industry is to continue to grow, PC vendors must begin to incorporate new technologies into machines, such as voice recognition and ease-of-use technology, even thought that will increase risk and cost." (Begin to incorporate new technologies into machines? Seem's to me the industry has always incorporated new technology into it's machines. Sounds to me like they're looking for that "Killer Ap" that requires all the latest power). "You will all have to worry about it to be successful," he said. "Otherwise, we are going to get anemic growth going forward...Growing this business is our collective responsibility." (Kind of scary). From InfoWorld Electric "Growth this year will continue to be slower than it has been during the past several years, said Paul Otellini, Intel executive vice president and general manager of the Intel Architecture business group, in Santa Clara, Calif. We were all shocked by the inventory problems that plagued Intel and PC OEMs during the past few months, Otellini said. Although business will improve this year, growth is not likely to reach historical levels, Otellini said. I would kill to be able to book that kind of growth, Otellini said." I don't view these as confidence building statements.