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

To: Fred Fahmy who wrote (57378)	6/6/1998 2:41:00 PM
From: mr.mark	Read Replies (1) \| Respond to of 186894

"BTW, what is the source of ZD's "poll" and how scientific is it? Do you really believe these figures?? If so, how do you explain why AMD/Cyrix still have such a tiny market share?? How come 7-8 out of every 10 PC's being sold aren't AMD or Cyrix since everyone seems willing to buy non-Intel chips?? These systems are cheaper right?? Let's see, lower prices and a huge (almost 80% according to the "poll") willingness of people to use clones yet the clones still sell have a very small market share?? What's wrong with this picture?? Do you think a survey of corporate IS/IT managers would also yield the same results??" you make excellent points, fred.

To: Fred Fahmy who wrote (57378)	6/6/1998 2:55:00 PM
From: gnuman	Read Replies (3) \| Respond to of 186894

Hi Fred, Why I think it's a big deal. You can't make money till you sell something, and you can't sell something till your product is accepted, ( by the manufacturers and the consumers). Having IBM and Compaq accept AMD and Cyrix is a powerful indicator that the product is good, and has the blessing of two of the major producers. That's a big deal. Remember all the negative posts on this thread about AMD's reliability problems? Obviously IBM, Compaq and others don't think there is a problem. I notice that you gave AMD and Cyrix 20-30% market share of PC's. Considering where their products are I think that's pretty impressive. (Probably closer to 20% then 30% though). Will they gain more share with the newest products just introduced? I guess we have to wait and see. They are making major inroads into the retail channels. I also think this is a good deal for the makers. As I posted many months ago, I thought the use of AMD and Cyrix was part of a Machiavellian business plan to drive down the price of CPU's. If not a real strategy, the results are the same. I also believed that CPU's were becoming true commodities. When I posted a year ago that Intel was entering a new era and gave the reasons why, you disagreed with everything I said. I also said I believed that IBM and Compaq would go out of there way to insure AMD's survival. They represent a tremendous bargaining tool. If they disappeared the leverage would vanish with them. Remember when the majority of this thread viewed Sub-0's as toys, and no one would want them? Well the toy's are now superior to the high-end PC's shipping a year ago. (But I suppose that just means the definition of toy's is a moving target). ;-) We know that the percentage of $1000 PC's shipped to OEM's is increasing. Whose chips are they? If Intel has or will reduce prices to maintain this market segment the suppliers and purchasers should be very happy. If so, what is the impact on Intel? I think by the end of this year over half the corporate purchases will be $1000 class machines. (Less monitor, of course). These machines are more powerful then what they bought a year ago, and the applications are pretty much the same. And if we look at the price learning curve for CPU's I feel comfortable in that prediction. And the fastest growing segment, internet users, don't need anything more. As for the poll, I can only assume that ZD conducted this poll over the net, and they probably don't know the population of the responders. (It was rather startling, though). And AMD and Cyrix are getting more and more design wins, both in desk-tops and lap-tops. I think having quality makers behind them had a lot to do with this penetration. So yes, I think it was a big deal. So like I said a year ago, Intel is entering, (has entered), a new era.