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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: R Stevens who wrote (11144)	6/9/1998 5:27:00 PM
From: SidStock	Respond to of 14577

Intel dumping 3D accelerator chips... nah... that couldnt have anything to do with S3..... :) Do i hear 4 bucks? Sid

To: R Stevens who wrote (11144)	6/9/1998 5:39:00 PM
From: Synapsid	Respond to of 14577

I see Intel gets all the blame. But the Intel boards are not yet the mainstream low-end, high-volume boards. I believe it is Trident and SiS who are really dumping at S3's expense (scenario would be S3 showing restraint to keep the ASP of AGP-based chips up, competitors such as Trident taking advantage). If Intel wants to move to the "higher-end" mainstream of the Taiwan segment (where the ViRGE used to be in its first year), it has to reduce the price gap (i.e. $18 vs. $10 (wild guess for low end AGP parts) as opposed to $30 vs. $10), and has done so. Of course, the overwhelming acceptance of the Intel part does add to the price pressure, and their marketing plans make things look pretty gloomy for many of Intel's competitors in the near future. A column on JPA (www.jpa.com) also mentioned that IPO plans among Taiwan manufacturers were contributing to a massive oversupply of low-end boards. All of which may result in absurdly low revenues for S3 in the next two quarters (triple whammy of PC OEM market share erosion, Asian oversupply, and market share loss in Asia).