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Technology Stocks : Intel Corporation (INTC)
INTC 41.41+2.2%Dec 5 9:30 AM EST

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To: Amy J who wrote (168153)7/13/2002 8:51:35 PM
From: Elmer   of 186894
 
On a related note, Thread, Elmer, what is the state of Intel's processes and why are the margins so poor nowadays, they're at 49% down from 63%, a huge drop. Can't Intel do better? Improve the process or cut costs somehow? The margins and profits need to be improved.

Can't comment specifically on Intel's yields except to remind you that Paul Otellini said Intel's yields are "World Class". Jerry Sanders said the same thing about AMD's yields but I'll just leave it to you to decide who to believe. I think ASPs are the issue here. I think we're going to have to get used to lower processor ASPs. That's why Intel is pushing so hard in other areas. They know they can't grow on uPs alone. Comms, wireless and highend servers is where the growth is going to come from.

EP
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