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Technology Stocks : Intel Corporation (INTC)
INTC 48.60+3.1%9:38 AM EST

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To: Brian Malloy who wrote (22226)5/18/1997 2:30:00 AM
From: Ali Chen   of 186894
 
Brian,<You really don't know what you are talking about.> First time I just skipped this post, but Dr. Paul Engel was so exited about it, so I cannot resist...

<1. INTC has always had price cuts.>
Yes, just to fudge their abnormal margins in order to fit into "flat" projected earnings.

<2. If you don't know about Learning Curves then go to a library and check out a book on Cost Estimation and see how it works in the real world.> ????

<3. No company loves you, that isn't their job.>
See #1.

<4. If you think someone else is "pushing" the envelope
or making a better chip then buy it. No one makes you
or anyone else buy INTEL inside.>
Sure. This is not about better chips. This push is to make your PC absolete and force you to buy a new one. With 90% of PC market there are no other chips in stores, how I can buy a different chip?

<5. Intel is not a monopoly. There are many alternatives and
substitutes. You can buy computers from Apple, Workstations from
SUN, SGI, HP or even an Alpha based workstation, or do they
charge too much for you?>
Do not mix apples and oranges.

<6. The cost per mip is decreasing at an exponential rate
each year. You are getting a good deal whether you like
it or believe it.>
No, you are not getting any better deal. All your extra MIPS go to Microsoft for their inflated interface, and the effective user performance remains "flat". And the price of a decent PC remains flat for many years in the range of $2500-$3000. All this is a direct consequence of the "flat" business model of Wintel.

<7. If there was no INTEL but we had say 50 microprocessor
makers the total cost of a PC would be higher, there
would be no standards, components would be less
interchangeable it would be a connectivity nightmare.>
This is just totally wrong. It is the Intel who is trying to avoid standartization of sensitive (to Intel) PC components continuously introducing new buses that fit only the Intel CPU architecture. All SCSI hard drives are perfectly interchangeable without any favor from Intel, IDE drives are standartized as well. All SVGA monitors can be plugged into video cards without any need for adapters or something else. If you are not a monopolist, you should better appreciate the usefulness of standartization, not opposite.

IMEO,
- Ali
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