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Hmmm, this paints an interesting picture. Well, I think we all know about supply and demand, if not, here is a refresher. If demand is high, sellers can have high prices and sell a lot of units. If demand lessens, sellers must lower their prices to sell the same number as when demand was higher. Just looking back in pc world magazine, i couldn't help but to notice that for the power desktop pc's, prices have dropped, by what I would say is 16%. These are not the same models of computers, they are ones that have been out for about a month. My analysis tells me that pc demand is decreasing and in order for sellers to sell the same, or maybe more units they must lower prices, if prices are lower, then they wouldn't be willing to pay as much for the chips made by intel. Fact: intel says pentium sales are slowing. Fact: intel BELIEVES this is because people want the pentium 2 just because initial demand is strong. Well, doesn't the next generation of processors always start out strong. The truth to the matter is intel doesn't know how well strong demand for the new processors will be and for what period of time. Intel gave us the facts. The analysts go on to make up, or guess, that people want the new processors. Not a good idea by the analysts, what people will do cannot be predicted. This may turn out to be a big problem for intel. They have already made such fast computers, why would someone want something else until the speed is 3x that of what they already have??? My advice, the fund managers want this tech rally, and soon they'll want it to disappear. People had fear for intel a couple months ago when there was little reason and the stock went down. now there is reason to fear and the stock went to where it was a couple of weeks ago. That is called denial and it can create problems. Face the facts, demand MAY be slowing. |
