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Technology Stocks : Intel Corporation (INTC)
INTC 37.51-0.8%3:59 PM EST

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To: Dan3 who wrote (125901)1/24/2001 12:56:58 PM
From: NITT   of 186894
 
re: "Intel's $200 ASPs would appear to be a thing of the past."

Someone says this every time Intel makes a price move. Intel has been successful at keeping ASPs up by keeping the mix of parts rich enough. If they move the 1GHz PIII volume mainstream and grow the PIV volume it will help hold up ASPs. The key is getting enough box makers to put high end CPUs in value configurations allowing buyers (business and consumer) to say "for $100 more I can get the bigger engine" without having to go for all the other bells and whistles.

This appears to be a tough quarter and ASPs may drop, but Intel appears much better prepared to deal with it, and they will be better prepared for the business climate rebound.

Nitt
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