Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 45.51

+10.7%

Jan 9 9:30 AM EST

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To: Andrew Chow who wrote (2466)	7/20/1996 12:09:00 AM
From: john o	of 186894

>>Amen! But what if the motherboard business is inherently uprofitable? On the one hand INTC tends to have a time to market advantage over its competitors (CYRX, AMD). But this advantage is minimized if the new CPU has its specs available (to chipset desinger, motherboard designers, and unfortunately competitors), but can't be readily used by volume OEM's due to lack of companion components. INTC tries to maximize its time to market advantage by also designing these components which threaten to become the time bottleneck to ramping the newest CPU's to hi volume. The bad part as you mention is the lack of return to capital in the motherboard (and to a lesser extent the chipset) business. That business then becomes a loss leader. Unpleasant but perhaps unaviodable...>> Seems to me that its a cost of doing business. It would be considered this if the margin equalled zero!

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