August 23, 2004                                                                                                                                 

INTEL PRICE DROP

Another scheduled price drop from Intel has had the same affect it always does.  When the price drop is announced, every supplier dumps their stock fearing that they might lose money if they hang on to it.  As usual, the price drop only affects the top 10 – 15% or so of Intel’s lineup.  Also, the price drop doesn’t affect anyone except Intel “disty’s” for at least 2 weeks.  Whenever this dumping occurs it has the exact opposite affect on the market.  Intel prices go up and then gradually trickle down over the next month or so.  Availability on Intel processors was a little flakey in the last two weeks but it appears to have settled down.  Pricing appears to have normalized again.

In regards to the last newsletter, yes I did make a mistake.  The 64bit version of Windows that is due out in fourth quarter is not called Longhorn.  It is simply Windows XP 64bit.  Forgive me.  My overloaded brain can only hold so much information before it starts to melt down.  With the slew of new products coming down the pipe it is hard for me to keep up.  If that’s the only mistake I made, I’m glad.  At least it was the only one you guys let me know about.  I opened myself up for corrections and you definitely let me know about it.  For those of you still trying to catch up, Longhorn is slated to be the replacement for Windows XP and its release date has not been confirmed but don’t expect it for at least a year or two.

We are getting more and more familiar with the new technology.  PCI-X is the most complicated part of all the changes and we are learning more about it everyday.  It is fascinating stuff.  We’ll probably discuss the subject again soon. 

TECHNICAL NOTE:  Many people are experiencing disconnect problems with Lucent chipset modems when using Windows XP.  Please visit windowsupdate.com and download the updated driver.  It will fix the problem. 

BUSINESS NOTE:  We have been asking all Colorado customers to provide their new tax licenses from the state.  We have been doing this for 8 months now.  If you don’t have it into us by the end of August, your account will be taxable – no more exceptions.

S&K

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