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Technology Stocks : Intel Corporation (INTC)

INTC 46.48

-4.5%

3:59 PM EST

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To: Ibexx who wrote (23875)	6/4/1997 9:13:00 PM
From: Road Walker	of 186894

Ibexx, H&Q summary: - Intel loaded the channel in Europe to pad 1st and 2nd quarter earnings and deplete excess "classic" inventory, without regard to the consequences. - Product transition will not meet demand. Back aways, I posted that Intel had a unique transition problem with the new competition from AMD/Cyrix. Traditionally they have priced new products like MMX and P2 far enough above the older generation that they could maintain sales in the older products on a price/value basis. I clearly remember when Pentium was first introduced, Intel said it wasn't a mainstream product, but intended for very high end users (and priced at that level). Competition limited their pricing power in this transition, and MMX and P2 are "reasonably priced". As a result, demand for the new product at competitive prices, has exceeded their projections that were based on prior transitions. Bottom line, AMD/Cyrix have had an adverse affect on Intel strategic plan and profitability. H&Q report was a pretty good analysis of the current situation, forward looking it lacks depth and detail. John

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