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Technology Stocks : Intel Corporation (INTC)
INTC 50.22-0.7%Feb 9 3:59 PM EST

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To: Paul Engel who wrote (4574)10/27/1996 8:29:00 PM
From: Aaron Cooperband   of 186894
 
Paul -

Whats your feel on Microsoft's latest announcement that they will be teaming up with Intel to produce a low cost PC to compete with Sun's low cost network computers?

It seems that there are 2 ways to view this announcement:

1) This may be a new market niche and an INTC/MSFT combination can create new demand for a new product, with commensurate profits, or

2) The low end of the computer spectrum is typically where Intel's competitors have been able to grab market share. New network computers may cannibalize existing higher-end sales, resulting in either sales of lower profit CPUs or sales lost to competitors, with lower profits over-all.

Aaron
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