Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: BillHoo who wrote (22696)	1/21/1999 12:32:00 PM
From: Richard Habib	Read Replies (4) \| Respond to of 213173

Bill, I'm sure Intel would like to sell all high margin processors but that isn't possible. Realizing that they adapted their strategy and production and as you can see by their margins, earnings and stock price seem to have done quite well. I'm not sure what you arguing . . . my point is that low cost machines will affect some PC makers and perhaps Apple more than others. The reason is that some PC companies and Intel as their processor supplier have a truely segmented market with a low, what we would call the PC sector, and a high end market, what we would call workstation and server market. PC makers with this structure include Dell and Compaq. Other PC makers like Acer, etc. only operate in the PC market which you can now consider to be basically low end. Apple operates only in the PC segment although they are trying to develop a sort of "higher end" PC market. That in no way compares to the real high end of workstations and servers presently running Xeon chips. The conclusion, low cost PCs are a threat to Apple and other PC makers that have no high end offering to offset the low-end. By the way did you notice eMachines had the 4th best selling PC behind the iMac. Keep in mind eMachines has specifically threatened the iMac market with the heavily styled machine that is supposed to debut 1st half 99. Alot of posters on the thread tout the iMac as internet ready machines but of course you need very little computer to be an internet machine and the eMachines certainly fit that bill. Rich