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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (72532)	1/30/1999 4:35:00 PM
From: puborectalis	Read Replies (3) \| Respond to of 186894

Paul...why is Rambus in the doghouse?...isn't Intel closely allied with it?

To: Paul Engel who wrote (72532)	1/31/1999 1:43:00 PM
From: puborectalis	Respond to of 186894

Subscriptions Stock/Fund Quotes: SEARCH: MONEY.com > GDP Report Red Cape for Bulls YOUR COMPANY > Hate Networking? Get Over It! TIME.com > Clinton: The Will To Survive TIME DIGITAL.com > The War Over Women On the Web ENTERTAINMENT WEEKLY.com > Rock Stars Invade Sundance! MORE: Easy shopping at the Giftfinder Business Books @barnesandnoble Tax Software at Outpost.com Free Trial: Money Magazine Fortune Education Program Fortune Conferences The Fortune 500 America's Most Admired Corps Asiaweek 500 The Tech Boom Will Keep On Rocking The Morphing of Intel Erick Schonfeld Emerging from one of the worst recessions in the history of semiconductors, Intel is going on the warpath. Its mission: to redefine itself for a changing marketplace. For the past two decades Intel's chips have been the backbone of the entire PC industry. But as the PC ceases to be the sole focus of the business, the $26-billion-a-year company is wrestling with how to stay relevant. It's fighting battles on many fronts, including the popular sub-$1,000 PC sector. Rather than cede this area to clonemakers such as AMD or National Semiconductor, Intel plans to win back the market share it lost last year. How? "Intel will use its high-end chips to subsidize a war in the low end," says Scott Nirenberski, an analyst at Credit Suisse First Boston. Instead of relying on sales from one superchip that powers all PCs, Intel is banking on a classic strategy for maturing markets: segmentation. Thus its new Xeon is for high-end servers and workstations. The Pentium II and upcoming Pentium III are targeted at high-performance and corporate PCs. And its Celeron is aimed at sub-$1,000 PCs for consumers. The big test for Intel will be whether corporate buyers decide to stick with Pentiums and thus keep overall margins stable, or opt to hop on the sub-$1,000 bandwagon. If the latter occurs, even the high-end Xeon can't save Intel from the effects of rapid commoditization. On another front, Intel may butt heads with longtime ally Microsoft over what software will be embedded on chips as opposed to included in Windows. One potential conflict involves how Intel wants to enhance voice-recognition software. "We continue to focus on moving more and more functionality, like audio, into software so it runs directly on the chip," says Paul Otellini, executive vice president at Intel. Simultaneously, Intel will need to make a stronger push into the communications and consumer markets. Set-top boxes, Palms, and other information appliances may one day surpass PCs as the primary way people access the Internet. For Intel, duplicating its domination of the PC world in these highly fragmented markets won't be so easy. Manufacturers are wary of the company's ability to pocket an entire industry's margins, as it has done with PCs. They'll be watching their backs. Xeon and its brethren may come to the rescue here too. After all, the more devices that are requesting information from the Internet, the more demand there will be for powerful servers to dish it out. Winning in the server market, at the expense of companies such as Hewlett-Packard, IBM, and Sun Microsystems, is what it will take for Intel to stay dominant. Introduction: Investing in Technology 1. The Exchange Economy 2. Phones Get Swallowed 3. AOL Rising 4. Storage! Storage! Storage! 5. PC-Free Devices 6. Supersmart Cellular 7. The Y2K Play 8. Freebies Galore! 9. The Morphing of Intel 10. Microsoft Waning Magazine Issue:Vol. 139, No. 3, February 15, 1999 Search Fortune Help TECH BOOM Ways to Bet Click company name for current stock price. Intel $130/share The stock's nearly doubled from its low last June--yet analysts still call it a buy. TEN TRENDS Introduction: Investing in Technology 1. The Exchange Economy 2. Phones Get Swallowed 3. AOL Rising 4. Storage! Storage! Storage! 5. PC-Free Devices 6. Supersmart Cellular 7. The Y2K Play 8. Freebies Galore! 9. The Morphing of Intel 10. Microsoft Waning