Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 322.51

+6.1%

Feb 6 9:30 AM EST

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To: davesd who wrote (8971)	10/19/1997 3:27:00 PM
From: 16yearcycle	of 70976

Dave, I gather that you think cyrix/amd will create problems for INTC on the low end pc market,INTC will cut back on capital spending to prop up earnings, which will hurt AMAT. Is that what you think? INTC has 10 billion banked. INTC had an average price per processor of $255 for the quarter. CYRIX sold 1.3 million units for $93 million. That is $71.50 per unit INTC says they are serious about the low end market, so they expect gross margins to drop to about 50%, but not lower. Doesn't it occur to you that INTC can and will sell lower end chips, for less than CYRIX/AMD? INTC can afford to aggresively pursue market share, even if it temporarily hurts profits. I don't think you will see INTC mothball plants particularly when they feel a competitive threat. AMAT will not be harmed in any way by semiconductor companies competing hard with each other. Gene

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