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Technology Stocks : Intel Corporation (INTC)
INTC 46.98-6.5%2:50 PM EST
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To: Paul Chiu who wrote (4478)10/22/1996 10:03:00 AM
From: Larry Loeb   of 186894
 
Paul,

Please explain something to me.

I understand that if manufacturers have sold all of their product (for example ultra scsi drives and 200 Mhz Pentiums) that they left money on the table (they could have sold even more).

What I don't understand is why selling lower level products (which would presumably not have been sold otherwise) would reduce profits.

Are you only talking about percentages?

I wouldn't mind if INTC lowered their percentage margin if it meant significant growth in dollar profits.

I would appreciate your comments.

Thanks

Larry
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