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Technology Stocks : Intel Corporation (INTC)
INTC 37.81-4.3%Dec 12 9:30 AM EST

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To: BelowTheCrowd who wrote (168998)8/3/2002 10:35:11 AM
From: Amy J   of 186894
 
Hi Michael, RE: " I do think that as a matter of corporate culture, they are much more reluctant to discuss internal procedures and processes than other companies are. This is just one expression of Andy Grove's famous paranoia, but it is also reflective of the fact that Intel does a lot of things VERY differently from other companies and prefers not to give out too much information about how they do them.

A good example is product costing. Intel has a cost estimation and control mechanism that is second to none in the industry but is also completely unique. I am quite familiar with the systems and methodology and understand why they would prefer to keep them at least somewhat secret. Their cost system gives them a much better real-time view of product costs than anybody else in the industry has, and is a part of the reason they are one of the most efficient (if not the most efficient) manufacturers out there. It is not surprising that they might be reluctant to discuss in great detail how they arrive at the Cost of Goods Sold, and how the number might have changed had they used some other methodology.
...
I suspect that Intel's primary objection is due to the "proprietary process" issue, not due to the other stuff. Seems a long stretch to assume that there is necessarily fraud going on."

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That's a valid reason. My preference would be for Intel to only disclose what is useful, without revealing any type of information that gives other companies the ability to watch, learn, and copy.

It's better if Intel risks the short-term rather than the long-term.

Regards,
Amy J
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