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

To: jmac who wrote (82361)	6/1/1999 4:05:00 PM
From: Richard Habib	Read Replies (1) \| Respond to of 186894

Some news from Japan on Celeron 466 adoption schedule. Bulls & bears can find interesting data. nikkeibp.asiabiztech.com Japanese PC Makers Hesitate to Use New Celeron May 31, 1999 (TOKYO) -- Japan's personal computer makers are hesitant to adopt the new type of Celeron processor Intel Corp. announced on April 26. To date, when Intel started to deliver the new type of processor, Japanese and overseas makers presented new models with the processor simultaneously. But what happened with the new Celeron? It is a 466MHz version of the Celeron aimed at low-end PCs and has the new chip set, the 810, that Intel announced on this occasion. They are strategic products designed in the company's comeback attempt in the "super low-priced" PC market, where Intel is facing tough business competition with compatible processor makers. But in contrast with Intel's strategy, each PC maker is slow to adopt the Celeron processors at the present time. Notably, Japanese makers are deliberating over the adoption. Taking into account price changes of processors, it is probably in the second half of the year or later that the domestic market will see full lines of PCs equipped with the new Celeron and the 810 chip set. Only Two Makers Delivered Celeron PCs in May What is particular about the new Celeron lies is its operational frequency of 466MHz surpassing the past highest frequency of 433MHz. The 810 chip set is composed of three chips implementing a graphic controller, modem and sound function. The Celeron and 810 are strategic products intended for the market of low-priced PCs. Despite Intel's approach to the market, each PC maker has had a slow start (Table 1). Only two makers, Epson Hanbai Co., Ltd. and Gateway 2000 Japan Inc., shipped the Celeron 466MHz version in Japan this May. Though Dell Computer Corp. of Japan, Compaq KK and Hewlett-Packard Japan Ltd. made public their intention to adopt those Intel products, the market is still waiting for them to debut their PCs equipped with the new Intel chips. Japanese makers are more deliberate about the Celeron. NEC Corp. said it has no future plans to adopt new Intel chips, and Fujitsu Ltd. said it cannot tell if it will adopt them at present. Japan and U.S. Low-Priced PC Market Sizes Differ One reason why each maker has not announced its Celeron-based PCs at present is a time lag in deliveries between the 810 chip set and the new Celeron. It will be around June that Intel starts to deliver the 810 chip set to makers. The decision by makers that it is advantageous to adopt simultaneously both the new Celeron and the 810 chip set for issuing competent products is one reason preventing them from presenting new products at present. The situation is more complicated with Japanese makers unanimously saying they have no plans so far to release new models with the new Celeron. One factor as to why Japanese makers are taking this stance is a gap between Japan and U.S. markets for low-priced PCs. According to the U.S. research company PC Data Inc., the average retail PC price in the United States in November 1998 was US$992 (almost 119,000 yen at a rate of 120 yen per US$1). The sales amount of the PCs priced at less than US$1,000 has drastically increased 128 percent year-on-year. As long as user needs are directed to price-buster PCs, U.S. makers must compete by pushing new products into the market. By contrast, PCs priced below US$1,000 are still a minority in Japan, according to a specialist in a domestic maker. "We don't expect to see large demand emerging, even if we set the price of a PC to a lower level. This is because a majority of consumers don't feel the 'necessity' for purchasing a PC," said the source. It is not in the interest of Japanese PC makers to take a risk of introducing super-low-priced PCs, which promise only a thin margin, as long as no big demand for PCs is expected. This is the primary reason why domestic manufacturers are not so tempted to go for cheap PCs. In addition, the delivery timing of the new processors is keeping PC makers on their toes. On April 26 Intel started delivery of the 446MHz version of the Celeron. But, it is in late May that each PC maker announced new models for their usual summer sales campaign period between June and July. "With the timing that Intel started the delivery, we cannot make our schedule of product announcements in time within May," said the source. Full Scale Penetration Expected in the Second Half of 1999 Nonetheless, it is expected that PCs equipped with both the 466 MHz version of the Celeron and the 810 chip set will be arriving in Japan in the second half of 1999. It will begin with mainly foreign-affiliated makers that are expected to deliver their Celeron/810 products in June. Most Japanese makers will also have prepared their product lineups adopting the 466MHz version of the Celeron and the 810 chip set in the second half of the year. Intel plans to deliver the Celeron with a 500MHz operational frequency in the second quarter of 1999, and thus naturally announce a price cut in the 466MHz version of the Celeron. This will be when Japanese PC manufacturers will adopt the 466MHz. Intel will reportedly maintain a policy to further strengthen efforts to provide low-priced processors. However, it is still unknown how these low-priced processors will change PC prices in Japan. Table: Plans of key makers for adopting the466MHz version of the Celeron and the 810 chip set Maker Celeron 466MHz First line below company 810 chip set Second line below company NEC No plans at present to announce machines equipped with the chip. Will adopt the chip in machines to be delivered around June. Epson Hanbai Will adopt the chip in machines to be delivered in May. Will adopt the chip, but the delivery date is not fixed. Compaq K.K. Will adopt the chip in machines to be delivered around June. Will adopt the chip in machines to be delivered around June. Dell Computer Will adopt the chip in machines to be delivered around June. Will adopt the chip in machines to be delivered around June. Gateway 2000 Japan Applied the chip in machines to be delivered in May. Will adopt the chip, but the delivery date is not fixed. HP Japan Will adopt the chip in machines to be delivered around June. Will adopt the chip in machines to be delivered around June. *Toshiba Corp., IBM Japan Ltd., Hitachi Ltd.,Fujitsu Ltd. and Mitsubishi Electric Corp., have not fixed a datewhen either the 466MHz Celeron or the 810 chip set is used. (Ryota Tamaoki, Staff Editor, Nikkei Computer)