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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: Dan3 who wrote (91850)	11/7/1999 7:46:00 PM
From: Road Walker	Read Replies (1) of 186894

Dan, "OS and mass distribution application costs have stayed absurdly high compared to the drop in hardware costs - and they should have dropped more, not less, due to the relative economies of scale (marginal cost of each additional unit "produced" is near zero)." One, you are neglecting cost of R&D. Two, are you prepared to dictate gross margin, or have the government dictate gross margin? It sound like that is what you are saying when you say prices "should" have dropped. Price is determined by what a willing buyer and a willing seller..., there is no "should" involved. Thats the way capitalism works. "It's like needing to bribe someone to get a business permit - and not being permitted to compete if you might put pressure on the sloppy operation run by some official's brother-in-law." This analogy makes no sense at all. John

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