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Technology Stocks : Intel Corporation (INTC)
INTC 48.32-0.8%Jan 15 3:59 PM EST
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To: Dan3 who wrote (171242)9/26/2002 3:23:15 AM
From: NITT  Read Replies (1) of 186894
 
re"What Intel did in the late 90's was not jack up prices, rather they stopped investing in new plant and new products but kept charging the same high prices - in a capital intensive business, this let them increase their profits considerably."

You are either a complete idiot, or you just like to flame bate... I'll assume you just like to flame bate. For others on the thread interested in the facts:

Intel did not "stop" investing in new plants and new products in the late 90's. They did reduce capital spending in '98 and '99 versus '97, but they still spend more in both of those years then they did in '96. '97 was a major capital addition years for fabs that handled the ramp beyond 100Mu/year. Intel increased R&D every year in the past 10 years with the exception of 00' and 01' and that has not appeared to slow down their pipeline of new products. Intel probably left some profits on the table for AMD to pick up when capacity could not keep up in late '99 and '00... and I will agree Athlon has given Intel strong motivation. But Dan, I can't imagine may people on this thread taking anything you say seriously with posts like your last one.

See Intel's Spending here: intel.com

See AMDs spending over the same period here, and remember, they are the ones who have decided to "partner" for manufacturing capacity in the future for their most important products: corporate.amd.com
click on financial highlights. To look at the highlights for years prior to '97 go to the archive and look at the '97 annual report.

Nitt
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