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Technology Stocks : Intel Corporation (INTC)

INTC 33.62

-4.2%

Nov 20 3:59 PM EST

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To: Paul Engel who wrote (161501)	3/8/2002 12:05:50 AM
From: Dan3	Read Replies (2) of 186894

Re: Intel's Server CPU plans for 2002 - and pricing: Note the RAPID drop in Xeon 2.2 GHz pricing They've had to drop ASPs to slow the loss of market share in servers to AMD - Intel's mid-range to high end departmental server chips used to be priced in the range of $800 to $3,000. Now Intel server chips are going for as little as $200, and the new Xeon 2.4GHZ is scheduled to be introduced at $615! This is critical for AMD, because it means that even if AMD gains ground in servers only slowly this year, Intel is still missing the profits they could otherwise use to cross-subsidize their desktop chips. It's also key for AMD to maintain a presence in the mobile market, for the same reason - and they have been.

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