The coming industry shakeout?


Michael Dell plays Cassandra:
"I think that there will certainly be some consolidation and competitive shakeout," Michael Dell said today in a conference call with analysts after the computer maker warned that its fourth-quarter earnings would fall short of projections.

"This is an industry which needs consolidation. There's over-capacity, somebody has to leave," (Bear Stearns analyst Andy) Neff said at the time. "I think that two of the top 10 PC makers will exit the market this year."

Intel is looking to aggressively drive down the prices of their processors:
If Advanced Micro Devices Inc. has its way, there will be no processor price war with arch-rival Intel Corp. this quarter, AMD chairman Jerry Sanders told financial analysts this week.

But that's doubtful, as Intel executives this week said the company will be merchandizing its new Pentium 4 processor with spending as high as peak holiday-season promotion levels.

Analysts expect Intel to exercise price cuts and incentives. Longer term, both AMD and Intel plan to increase their capital spending, despite the market downturn, with an eye toward reducing unit costs.

As some DSL providers continue to struggle, why not take them to court? The U.S. Supreme Court will be hearing a case involving broadband.
The Supreme Court agreed Monday to review a dispute over the legal status of high-speed Internet traffic running on cable television lines, putting the high court in a position to either accelerate or delay the availability of such broadband offerings across the country.
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