Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 48.76

+10.9%

Jan 28 3:59 PM EST

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To: mxyztplk who wrote (23932)	6/5/1997 1:18:00 AM
From: Buy Low Sell Hi	of 186894

I don't know the percentage of profits Intel receives from retail sales vs. corporate. But I do know that on these sub $1000 machines Intel is not making much money. The processor cost must be around $100, small profit for a company used to making much more on the sale of PC. I think its a negative for Intel because of the "trend"; consumers are buying into the concept of not having to pay $2k for a computer anymore. In reality, the performance of their high-end machines is not that much better than the low-end machines to justify a 2x+ cost. The perception is shifting on how much the consumer has to pay for a "good" computer. Once the perception shifts, it won't shift back. Therefore, I don't believe Intel will continue to earn what they did last year in the retail sector if most of the PCs sold are going at low prices.

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