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Politics : Formerly About Advanced Micro Devices

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To: Scumbria who wrote (66789)7/28/1999 1:53:00 PM
From: Robert Douglas  Read Replies (1) of 1577025
 
While chips for these machines carry slimmer profit margins, Intel will benefit because they're cheap to make and in high demand, he said.

To which you said:

This reminds me of a Saturday Night Live Routine. "We sell below cost, but what we lose in margin we make up in volume".

It sounds like the analysts are pumping INTC up for the big dump. The logic is nonsensical.


Slimmer does not mean selling below cost. Clearly Peck, who has been neutral on Intel for a year and a half , thinks that Intel is making money in the low end. This makes perfect sense to me!

-RD
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