Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 46.96

-2.8%

Jan 16 9:30 AM EST

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To: John Koligman who wrote (129659)	3/10/2001 7:30:52 PM
From: Paul Engel	Read Replies (2) of 186894

John - Re: "In regard to Intel, I'm a bit surprised not to hear a peep out of anyone on the thread concerning the rather substantial drop in GM. " Intel's gross margins are highly dependent upon SALES/Manufacturing VOLUME. Intel's (they are not alone) depreciation and fixed costs are spread over the number of units they make and sell. As this number drops off, the overall COST of each unit increases - rather dramatically. Hence, as the cost/unit goes up, the gross margin drops - even if ASPs remain constant. Paul

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