SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Intel Corporation (INTC)
INTC 34.50+2.6%Nov 21 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Fred Fahmy who wrote (35678)10/14/1997 11:18:00 PM
From: davesd   of 186894
 
Fred, having seen and read your posts on Mike Burke.....I know you have a very bullish outlook on INTC and other tech stocks. But you cannot ignore the price cutting that is going on to sell box's....only DELL and CPQ are really making money and that is due to shear volume that they do and good manufacturing practices.....but they are startinh to go head to head and cutting prices to gain market share.....Also, they have to keep lowering PC prices to keep the growth going..... and with this growth INTC's earnings have gone downhill. What happens if growth slows alittle.

Sooner or later when the PC price cuts slowdown, PC sales/growth will slowdown too....and that will leave INTC with a lots of underutlized capacity futher eroding margins. As far as I know INTC has never had underutlization problems, this may be the first time in the last few years. AMD, CYRX and IDTI will keep the margin pressure at the mid and low end where most of the sales are...who knows how long they will last, but it could be awhile.

One thing for sure INTC will not be able to increase margins by jacking up prices as they have done in the past...if they do..they risk AMD getting a foothold or an uptick in PC prices which will slowdown PC sales.....it's going to be very interesting to see how things unfold in the next 6 months.

dave
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News