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


To: Patrick Grinsell who wrote (9852)12/23/1998 12:21:00 AM
From: Rob Pierce  Read Replies (1) | Respond to of 16960
 
re: Distribution limitations

One possibility might be that TDFX would arrange for exculsive
regional boardmakers, say: STB in North America, Guillemot in Europe,
someone else in Asia, etc. Each would have exclusive rights in their
respective territories. This would prevent undercutting across
territories, (presumably) leverage knowledge of the local markets,
and especially provide for higher product margins.

Pure speculation, but it would seem to fit with the stated efforts to
exert greater control over the product integration and distribution.

Guillemot may be able to sell V2 in the US now, but to become one of
priveleged few able to provide future products (V3, Rampage, etc.)
they may have to sacrifice their US sales in order to do so.

Rob Pierce