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Technology Stocks : Intel Corporation (INTC)
INTC 43.490.0%10:50 AM EST

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To: Dan3 who wrote (124770)1/12/2001 8:54:00 AM
From: f.simons  Read Replies (2) of 186894
 
With each P4 it ships, Intel includes a rambus rebate check that is equal to AMD's cost of production of 2 Athlons.

Dan-

I keep hearing this from you AMDroids, and the significance escapes me. What difference does it make whether rebates are given or prices reduced. It seems to me that the effect on Intel's bottom line is the same. If Intel can sell its chips for $400 less a $70 rebate, how is this different from selling the chip for $330.

I am not a marketer, and I may well be missing something, but seems like common sense to me.

Frank
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