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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: robert w fain who wrote (3952)	7/27/1998 12:27:00 AM
From: Time Traveler	Read Replies (1) \| Respond to of 6180

Intel's x86 market has a very power ally, Microsoft, but TI's DSP market has no such big brother looking over your shoulder. One generation of equipment may utilize TI DSPs; the subsequent generations certainly have no loyalty towards TI's DSPs. Time Traveler

To: robert w fain who wrote (3952)	7/27/1998 2:04:00 AM
From: pat mudge	Respond to of 6180

How would you compare TI's position in the DSP market to INTEL's in the computer Microprocessor market ? Right now I think TI has 45% of the market, with several competitors nipping at their heels --- LU and MOT, most notably, now that they've combined R&D --- yet, even with this lead, I'd like to see them team with someone like ADI to widen the gap between them and the baying hounds. In addition to the combined strength in overall DSPs, their DSL customer bases would be a formidable force against ALA. Do you think TI's competition will be stronger and drive prices and margins down sooner? I don't think they'll be stronger nor do I think the prices will be driven down by competition as much as the normal reductions in the course of a product's life-cycle. Will DSPs be less standard so that many companies will split up the market and no real dominant company will own it? With third-party suppliers, yes, but with core providers like TI, I suspect there'll be head-to-head competition. However, with DSPs, unlike microprocessors, they're fully upgradeable and it's likely customers will stay with their original supplier --- bringing less competitive pressures. In addition, I would imagine any price reductions in core chips will be offset by software enhancements where margins are far more lucrative. If I understand the market dynamics correctly, pricing pressures will be different from what Intel experiences. In some ways, Microsoft might be a better comparison. Welcome contrary opinions. I could be way off. Later --- Pat