Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 36.26

+0.5%

Dec 18 3:59 PM EST

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To: Maxwell who wrote (25462)	7/1/1997 12:31:00 PM
From: Joey Smith	of 186894

Maxwell, you're assuming that these price cuts are in response to competition, which I think is a wrong assumption. Intel is probably more worried about a slowing PC market. These announced cuts serve to ensure that PC market grows quickly...at the same time, these cuts really hurt competitor's earnings at a time when they are trying to ramp up. Increased sales volume units and economies of scale/scope (lower manufacturing costs) will offset the reduction in price somewhat for Intel. AMD and Cyrix don't have these benefits and will therefore feel the sting of these price cuts more on their bottom line. joey

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