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Technology Stocks : Intel Corporation (INTC)
INTC 36.66+1.3%3:59 PM EST
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To: dale_laroy who wrote (141157)8/9/2001 2:54:32 PM
From: Noel  Read Replies (1) of 186894
 
Dale, Re: Intel price cuts,

If you have been following Intel's pricing strategies from the days of the
Pentium this has always been the case. As wanna_bmw points out the spread
right now is much less than what it used to be. The reason for this is
that Intel cannot provide that many 2GHz parts. So it artificially constrains the
demand by making the pricing appear ridiculous. This way only someone desperate enough
for that incremental performance, gamers and some server people, pay that premium.
The OEMs are also to blame here since they differentiate their products
similarly. You will see 2GHz processors being bundled into systems with
other high end components only. Even though at times it may make more sense
from an overall value perspective to bundle cheaper processors with high end components.

Watch them lower the price on the 2GHz part when Northwood debuts!
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