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Technology Stocks : Intel Corporation (INTC)

INTC 37.83

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3:59 PM EST

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To: Scott Meyer who wrote (165965)	6/7/2002 2:37:57 PM
From: tcmay	Read Replies (2) of 186894

Does anybody really buy this "depreciation cycle" nonsense? When I was at Intel, we didn't get to buy new oscilloscopes and voltmeters after a 3- or 4-year "depreciation cycle." We got to buy new things when we could justify to management a need for them. Depreciation was an accounting and tax thing, not something that gave us a free pass to replace our VAX after 3-4 years. Money is money, and if a company has 75 perfectly usable 400 MHz PCs bought in 1999, the big year for Y2K upgrades, and they aren't doing super CPU-intensive tasks like DV movie editing and Photoshop, why should they buy 75 new machines? Because accountants tell them that the company reported the machines as fully depreciated? Budgets are budgets. This is why companies aren't dumping all of their old machines in favor of new ones. --Tim May

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