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Technology Stocks : Intel Corporation (INTC)
INTC 45.51+10.7%Jan 9 9:30 AM EST
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To: Willsgarden who wrote (39147)11/6/1997 12:03:00 PM
From: mauser96  Read Replies (2) of 186894
 
In almost any other business cutting the price of an item increases the number of people that can afford to own one, and therefore buy one. Some surveys have shown that a large percentage of the public are uninterested in owning a PC at almost any imaginable price. They can't see a need for it, and even though this wasn't mentioned in the
survey, I suspect they are intimidated by computers. Perhaps they can be persuaded to buy a sub $1000 computer for their children. Most countries aren't as rich as the USA and cheaper computers are bound to expand the market in these countries. In retrospect, the move to cheaper computers was inevitable. Intel will adapt and prosper. It will be like the auto market-some people are willing and able to buy a Lexus, some are satisfied with an Escort. Most of the analysts regard this movement to cheaper computers as a huge challenge, but it could turn out to be a sea change opportunity for computer companies to sell to the billions of people that can't afford a $3000 computer. What a huge potential market! The cloud hanging over Intel is now so universal, that the only thing that will send the stock up is surprise upside earnings, and I don't see much chance for that until mid 1998 at the earliest.
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