Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 50.59

+4.9%

Feb 6 9:30 AM EST

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To: Dan3 who wrote (134737)	5/11/2001 9:58:49 PM
From: dale_laroy	Read Replies (1) of 186894

>Now that they've lost their ability to charge monopoly prices for mobile and SMP CPUs (the first 80% of their profits went when they lost the ability to charge monopoly prices for desktop CPUs) they aren't going to be able to make any profits at all - possibly for many years.< Mobile pricing is definitely roadkill. However, at best the small cache, 512K and smaller, Xeons will be impacted. AMD left an opening for large cache Xeons as soon as they cancelled Mustang. In fact, it is possible they will not even be able to offer significant competition in any of the Xeon market. To compete effectively in the Xeon market, AMD needs both large cache processors and at least four-way chipsets. If AMD is to halt the erosion in the desktop market, they have to eliminate Intel's ability to subsidize lower margin desktop processor revenues with higher margin Xeon revenues. Once AMD is a sufficient threat to force the prices of Xeon processors down, Intel will find it much more difficult to subsidize low end processors.

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