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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 9:30 AM EST

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To: Tenchusatsu who wrote (101549)3/26/2000 8:25:00 AM
From: Road Walker  Read Replies (2) of 186894
 
Tench, re: 1 gig/costco

Actually Costco has a unique retail strategy. They want to have highend products at low prices, they don't want to stock what other retailers stock. The perception they are trying to foster is high end value. This is a short term coup for AMD.

The downside is that it's essentially one sale, usually not an ongoing program. Costco will switch to the next value product in a heartbeat. It also sets a low retail price for the product (usually 10% over cost), and other retailers will be very reluctant to compete head on. Believe me, the Intel sales force will be saying to customers "You want to compete with Costco?" You kind of mortgage your future for one big revenue pop.

John
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