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Technology Stocks : Intel Corporation (INTC)

INTC 37.81

-4.3%

Dec 12 9:30 AM EST

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To: Jules V who wrote (50199)	3/9/1998 12:38:00 AM
From: Paul Engel	Read Replies (1) of 186894

Jules - Re: Intel loses TCI Digital Set Top Box Design In Malone was quoted as saying: "To keep the price of a basic digital box at about $300, the processors will need to cost about $10 each with the ability to process more than 200 million instructions per second,Malone said. Intel's 200 MIPs processor costs about $200, he said. " The estimated 25 million Set Top Boxes, to be sold over the next 5 years, will gross 25,000,000 x $10 = $250,000,000. IF ALL THAT came in ONE YEAR (not five) that would only amount to 1% of Intel's 1997 Revenue. Is losing this a big deal for Intel? Better yet, is WINNING this business a big deal for the winner? I'll bet Kellog's makes more profit on a box of cereal than the winner of this deal makes on the sale of one CPU! Paul

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