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Technology Stocks : Intel Corporation (INTC)

INTC 40.78

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3:59 PM EST

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To: Gordon Hodgson who wrote (172017)	11/26/2002 8:18:08 PM
From: brushwud	Read Replies (1) of 186894

Who'd be so dumb to keep losing money on every chip they make and try to make it up up with volume. Sounds like a formula for losing money year after year doesn't it? Sort of like an AMD formula. You might be interested in this article about how Intel loses money on every flash chip they make yahoo.businessweek.com according to which: "Intel is moving into other markets -- a time-consuming task for a $26.5 billion outfit. Intel should increase its market share for flash memory used in cell phones from its current 20% to 80% by yearend, according to its own projections. During this period, the flash-memory market should grow from $6.9 billion to $8.2 billion. Yet because of Intel's aggressive pricing, it loses $200 million per quarter in that business -- and won't predict when it will turn profitable." Translation: "FTC to Intel: Stop subsidizing your flash business with monopoly profits from your processor business by yearend, except if you can monopolize (obtain 80%) of the flash market then you can lose as much as you want." Thanks to Petz for the link, who posted it here: Message 18276481

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