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Technology Stocks : Intel Corporation (INTC)
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To: Candle stick who wrote (23034)5/28/1997 1:38:00 PM
From: Paul Engel   of 186894
 
Candle Stick - Re: Intel Cutting Off DEC after Q3"

Let's wake up folks! Intel can choose to not renew any purchase agreement with DEC after the agreement expires.

HOWEVER, DEC doesn't have to buy Intel products from Intel! DEC can choose to buy Intel parts through distributors of Intel parts, of which there are many.

The only drawback to this is parts may not always be available when needed from distributors, and the cost of Intel parts will be higher when bought from distributors - the distributor has a "mark-up".

So, Intel isn't stupid. They know this is only an inconvenience. DEC can buy Cyrix or AMD parts, as was noted by Dave Taylor. However, Pentium Pro and Pentium II and Deschutes devices are not available from these other sources.

Intel's actions are designed to make a point that Intel will not provide the ammunition to DEC directly so that DEC can take shots at Intel. Further, I'm sure Intel wants to make it clear to DEC shareholders that DEC/Palmer are screwing upo the company )DEC) and that maybe these same shareholders ought to review their choice of management - or else find the company sucke down in a quagmire of extended litigation and further loss of market share/sales/profits.

Paul
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