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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: gnuman who wrote (62335)8/11/1998 9:15:00 PM
From: Fred Fahmy  Read Replies (1) of 186894
 
Gene,

Let me be clear. When I say prices have always been falling and will always be falling I mean for the same configuration. A new chip/PC always starts dropping shortly after announcement and continues to drop (i.e. you get more for your money). However, a more powerful replacement system at approximately the same price at which the previous generation started is always around the corner. I do not mean to imply that the average selling price across all segments combined will remain constant. This is a much more tricky equation and depends on mix. For example, lots of cheap PC's (many of which I still believe are incremental sales) will be offset by machines based on high end chips (i.e. servers). To what degree the offset will be is hard to predict. I can see the overall ASP for all machines going in both directions at different times depending on chip cycles and product transitions.

Is that confusing enough <ggg>.

FF
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