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Technology Stocks : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?

To: Scumbria who wrote (27821)	7/3/1998 3:22:00 AM
From: Craig Freeman	Read Replies (2) \| Respond to of 33344

Scumbria, the "sub-$1,000" computer has received so much publicity that you would think that there was no one left who is willing to spend $1,001. Not true. As a market matures, the available price points can widen. Walk into Circuit City and you'll find CD players priced anywhere from ~$100 to over $1,000. You can also get a complete stereo system with speakers for $200 or pay $2,000 for just one speaker. People start at the low end and, once hooked, work their way up. My take on the PC industry is that without the sub-K computer sales would have nosedived for lack of new customers. But the cheap PC brought millions of new users who, once they see Quake II or Comanche running on a PII/400, will start budgeting for their next and far more expensive system. All the CPU makers have worked hard to assure a solid upgrade market, by eliminating the chance of anyone actually buying an upgrade CPU. Intel switched from Socket 7 to Slot 1. AMD chose 2.2v and a 100MHz bus. NSM will require proprietary boards for the MXi. So the Pentium buyers of yesteryear will have to buy new PCs to run today's top titles. If the premium PC is dead, why is it that the boxmaker with the happiest shareholders -- DELL -- doesn't make a single sub-$1,000 PC? No one knows what kind of CPU it will take to run Quake III/DVD ... but you can be sure that Intel will price it at around $500 and that Dell will put it inside a $2,000+ PC. IMHO, NSM's destiny is not in fighting Intel for the desktop PC market. It lies in exploiting the MXi to create new markets. If and when that happens, NSM shareholders will be happy campers. Better yet, Fuchi and Yousef will have nothing to argue about ;^) Craig

To: Scumbria who wrote (27821)	7/3/1998 11:40:00 AM
From: Dale J.	Read Replies (1) \| Respond to of 33344

Scumbria, There really isn't any way for CPU prices to go back up. With the (claimed) excellent yields out of NSM, and the (claimed) improving yields from AMD, prices should continue drifting slowly down for the indefinite future. That just might be true. If AMD and NSM improve their yields then INtel will continue to respond with more price cuts. For awhile it looked as though the decline in AMD stock price was indicative of yield problems, but it may be more indicative of what will happen if they improve their yields. Dale