Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 50.59

+4.9%

Feb 6 9:30 AM EST

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To: Fred Fahmy who wrote (1777)	6/9/1996 11:30:00 PM
From: Larry Loeb	of 186894

I agree with you. Intel entered the low margin motherboard business to enable as many PC manufacturers as possible to quickly ship their product. This has lowered their margins and increased their exposure to price changes in commodity markets (such as memory). Intel does what it can to generate profits through its high value added processors. Where would be the value addition in an Intel PC? How would the Intel name on a PC give it a greater acceptance than that seen by Compaq, HP, IBM, Dell, etc. In short, I believe that it would be a horrendous error for Intel to try to compete with their loyal customers just to enter a price competitive market. Don't forget, Intel has not had an exceptional history with the consumer market. The Pentium fiasco, where business schools were provided a how-not-to in crisis management, is the most obvious example of why Intel should stick to the areas they know best, design and manufacture of world-class processors and related products. JMHO Larry

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