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Technology Stocks : Intel Corporation (INTC)
INTC 48.59-1.3%Feb 4 3:59 PM EST

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To: Joey Smith who wrote (34821)10/10/1997 10:58:00 PM
From: Joey Smith   of 186894
 
All, some interesting observations while visiting MicroCenter in Boston: 2 things struck me. First, there were many more PII models than I would have thought, and how low the cost of these PII models had gotten. For example, they had a 266 PII fully loaded (64M EDO RAM, etc) PowerSpec system (MicroCenter's brand) for $2100! All of the branded PII 233s were in the low $2,000s-$1,800s and 266 PII from $2100-$2500. The PII 233s were just 1-2 hundred dollars more than the Pentium 233 MMX in several cases. I asked about the 300 PIIs, and the salesman said I wasn't the first one to ask. They should be getting these very soon.

What I see happening is that when these PIIs go under $2000, consumers will go with these machines instead of the Pentium MMX, since the cost difference will be smaller. I actually overhead a few conversations that went as follows: "i think we should spend the extra 2 hundred dollars and buy the PII because in 2-3 years these systems will be everywhere." People have argued that you don't need a PII and you can do everything you need to do with a Pentium. Well, that may or may not be true. But, if you're ready to buy a MMX system and the cost difference is only a few hundred dollars, then consumers will go with the latest technology because it wont be outdated as quickly. PIIs will sell like hotcakes this Christmas as the price drops below $2000.

joey
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