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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: Simon Cardinale who wrote (7520)	9/22/1998 4:24:00 AM
From: Patrick Grinsell	Read Replies (1) \| Respond to of 16960

Simon, about the boardmakers... From an OEM perspective, boardmakers add very little value. Most of them farm out the actual manufacturing process anyway. STB may be the sole exception because of the way they have their distribution channel set up. They actually have numerous facilities near the OEM factories so that they can service OEMs with almost instantaneous supply. This shifts the inventory burden over to STB. This cleans up the OEMs balance sheet and gives them extra flexibility. For this reason I still give STB two thumbs up even though their near term looks bad. (I admit to selling right before the big drop. The TNT lateness and technical problems I knew would result in bad news for the quarter. A couple of block trade sells was all it took for me to run to the hills.) Diamond and Creative Labs have their stengths in the retail arena, but with all the competition things don't look good for them (in 3d video anyway). Both companies seem to be looking for outside sources of revenue. Diamond in particular would be in a world of hurt without 3dfx as Voodoo2 was half of their last quarter's revenue and they still couldn't make a profit. Bottom line: I think we will see many more marriages of chipmakers and boardmakers going forward just like 3dlabs. Pat

To: Simon Cardinale who wrote (7520)	9/22/1998 5:42:00 AM
From: Sleeperz	Read Replies (1) \| Respond to of 16960

DIMD recently bought Micronics. So DIMD could easily sell Mobos that integrated audio/graphics/modems/system all onto the Mobo from whoever is offering such integrated chips. IE, Intel, SIS, CYRIX, Then when other OEMs and Mobo makers start doing that, what happens to nVidia and TDFX.?? CL >>> What happens to Diamond, Creative Labs, and STB if nVidia and 3Dfx start making their own boards (or if 3Dfx does, and nVidia just goes out of business :)<<<<