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Technology Stocks : Intel Corporation (INTC)
INTC 48.26-0.7%Feb 5 3:59 PM EST

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To: Dinesh who wrote (153575)1/3/2002 9:04:45 PM
From: flint  Read Replies (1) of 186894
 
I think you are confused on the price war issued. Nobody ever WANTS a price war since there are no winners from it. The price war is created by a large fix operating cost and a softening market.

Sometimes its better to lose $100,000,000 by selling 10 million units for $10.00. Than it is to lose $200,000,000 because you tried selling your 10 million units for $30.00 but only sold 100,000 units.

With a large corporate overhead to feed and a weakening market Intel will have no choice but to keep prices extreamly compatative.

Flint
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