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Technology Stocks : Intel Corporation (INTC)
INTC 47.14-6.1%3:59 PM EST

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To: Henry Choy who wrote (3911)10/8/1996 9:40:00 PM
From: exhon2004   of 186894
 
Henry:

You picked up on all the key points that were wrong in the Solomon story. I mean the story was so poorly witten and full of inaccuracies the one issue they did raise that warrants discussion almost got buried. Erika Klauer noted the fact that cyrix lowered their pentium clone prices while intc will not have another price cut this year.

She apparently believes this will shift some volume away from intc to the clones, (eg cyrix). The cyrix price cut happened a day or two ago and I've been wondering how the market would treat the news. The market did not turn down for intc however until the Solomon downgrade hit.

Personally, I believe the cyrix price cut will impact cyrix's margins and not much else. I already chose to ride out any negative impact from this and stick with intc. If you were an oem pc manufacturer and you were planning on producing a million "intel inside" pc's for xmas, do you risk tearing the label off and leaving unsold units on the shelf? Methinks not.

Best Regards,

Greg Gimelli
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