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Technology Stocks : Intel Corporation (INTC)

INTC 33.88

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To: Road Walker who wrote (108995)	8/30/2000 4:46:19 PM
From: maui_dude	Read Replies (1) of 186894

John, Re: "You seem to be saying, correct me if I'm wrong, that you are willing to sacrifice leadership in microprocessors (IAG) to focus on the other 4 business groups." No I am not saying that. What I am saying is that it is OK to sacrifice some of the leadership position, provided there is enough headway to be made in other areas. Lets look at the revenue breakup of IAG and non-IAG group. The split is about 25B/5B. Over the next 3-4 years, even in a bad case scenerio where Intel loses its CPU market share to 70% and the CPU pie grows only by 15% (I think you will agree that this is a pretty pessimistic). My understanding is that Intel and Analyst guidance is that the non-IAG business could grow 50% per year over next several years (lets say until 2004). So, IAG/non-IAG Rev : In 2001 : 2.53/7.5B (assume 70% market share right away). In 2002 : 29/11.2B In 2003 : 33/16B In 2004 : 38/24B -------------------- Not too shabby. and a lower risk than ignoring non-IAG market and focusing on IAG only. Thats about 20% growth. Re : "it seems to me that you better mind the store while you adventure into new areas." My views are you better spend more time outside your store. Because you can have an army protecting your store, but if there is an earthquake on your island, your store goes with it anyway. My guess is that this is what Intel is paranoid about. Re : "All that said, I'm not sure that focus is the problem. " I cant imagine how Intel wouldn't be defocussed. With all these changes going on in the company and in the hi-tech world ? Having said this, I am in no way making excuses for Intel problems last 1.5 years. Just making a point that a wholesale restructuring in not necessary. Maui.

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