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

To: Pravin Kamdar who wrote (28284)	7/16/1998 12:58:00 PM
From: FJB	Read Replies (1) \| Respond to of 33344

Worst year ever? The long run of continuously faster and more powerful PCs has been ended by the sub-$1,000 machine. This fundamental market shift not only is having a profound effect on the industry leader, Intel Corp., but also is rippling through the entire supply chain, wreaking havoc in many IC market segments and in other sectors such as capital equipment. "The high-end logic companies, such as Intel, have moved aggressively to quarter-micron and below technologies so that they can offer high-performance products with higher margins," said G. Dan Hutcheson, president of VLSI Research Inc. in San Jose. "But the big catch," the analyst said, "is that the PC customer doesn't really care." Instead, he said, "the change is reflected in the customer's interest in the $1,000 PC and an unwillingness to pay more for the 400- or 500-MHz [superchips]." The PC customer's new emphasis on lower cost rather than higher performance can be seen in the plunging average selling price of the 32-bit microprocessor. It has dropped by nearly one-third in just one year. The ASP for the first five months of this year stood at $101.83, down from $146.07 in the same period last year, according to new estimates by IC Insights Inc., a Scottsdale, Ariz., market research firm. The 30% drop in 32-bit MPU prices comes primarily from growing pressures on Intel, which watched demand skyrocket for low-priced MPUs as competition from x86 clone makers intensified during the past year, according to analysts. A year-ago the situation was far different. Then it was strong microprocessor sales and prices that offset sharply eroding DRAM prices. Today there is no product that can make up for the DRAM tailspin, which is still going on. "In 1997, microprocessor revenues were up 27% and we were originally looking for an increase of 19% this year," said Bill McClean, president of IC Insights. "But now it looks flat, at best, which will take about $5 billion out of the market growth," the analyst said. "That's what has taken this market to a negative outlook." pubs.cmpnet.com

To: Pravin Kamdar who wrote (28284)	7/16/1998 1:40:00 PM
From: Investor A	Read Replies (2) \| Respond to of 33344

The rumor suggested that it would happen during 1Q/99. (Why so late?) By ridiculedly pricing the 1MB/2MB Xeon, Intel turns themselves as an expensive SRAM vendor. Not only it makes high-speed L2 cache, coupling with CPU, desirable for end users, it also create great profit opportunities for SRAM manufacturers to undercut Intel with better offers. Guess who would be most interested to put up high-end workstations with 4MB full speed L2 cache Cayenne under their own brand name to claim themselves as the real PC leader? By stepping back, Cyrix is going to help to set up "dozens famous brandnames" SLOT CPUs with various L2 cache option to compete with Intel. Image that giving you the choice between 2MB full speed L2 cache 400Mhz 1999 Cayenne and 512K half-speed L2 cache 1997 PII at the same price. What would be your choice? Cyrix always has better idea to outlaw Intel in technology (not marketing!). Hope that this one would work eventually. Fuchi ... who loves Cyrix's innovations Please support the PC industry & protect consumer interest techstocks.com users.aol.com