Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 41.41

+2.2%

Dec 5 3:59 PM EST

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To: The Duke of URL© who wrote (121091)	12/7/2000 1:40:24 PM
From: jeff_boyd___	of 186894

"Cost of Production" You are certainly right that Intel's cost to produce is less than AMD's. In a very competitive market with lots of competitors, I would think that a higher cost producer would be at risk of being driven out of the market. Here, however, if Intel's costs are $5 or $10 a unit higher, they would have to give up their margins in order to "drive AMD into the ground." That only works if AMD is only doing business in certain segments. The key question in my mind is whether AMD can move into the corporate space so they can avoid this. On that issue, it looks like AMD needs to make quite a bit of progress. On the Dresden accounting issue, you do raise a good point, but it isn't a huge issue. They continued to capitalize interest on the facility while "construction" dragged on, but in the overall scheme of things it wouldn't have been more than $50 or $60 million per year. This will be depreciated with the building. Regards, Jeff

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