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Technology Stocks : Intel Corporation (INTC)
INTC 37.28-0.6%Dec 16 3:59 PM EST

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To: tcmay who wrote (165977)6/8/2002 12:43:28 PM
From: Road Walker  Read Replies (1) of 186894
 
Tim,

re: Does anybody really buy this "depreciation cycle" nonsense... Budgets are budgets.

And budgets get approved or disapproved depending on the financial implications. A two year old PC has a barrier to replacement, it's probably got over $300 worth of depreciation left in it. Money that was spent, and can still be taken off taxes.

I don't think anyone ever called it a "depreciation cycle", until you did. The useful life of a PC used to be about three years, what was called the upgrade cycle, what the upgrade cycle is now is open to debate.

It's a lot easier for accounting to approve the replacement of a fully depreciated product. It doesn't mean it will be replaced, it means it can be replaced.

Does anyone really buy your "depreciation cycle" nonsense?

John
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