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Technology Stocks : Intel Corporation (INTC)
INTC 46.48-4.5%3:59 PM EST
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To: gnuman who wrote (36942)10/20/1997 5:04:00 PM
From: Paul Fiondella   of 186894
 
I agree, let's try to get back to the facts

The street price of a Pentium 166 is well below $132 (the highest I could find).
The street price of a Pentium P2-266 is $645.

That means you have to sell 5 P166s for every 1 P2-266.
If profit margins were lower at the low end and higher at the high end (which I think we can all agree on) and if the market is shifting toward the low end, then Intel's profit margins overall must decrease.

If volume doesn't increase to compensate, you have lower net profits.

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As to my comments about Intel making ziltch at the low end. Am I mistaken or did they not announce they were discontinuing these chips. That usually means selling close to cost. (ziltch in Lower East Side speak)

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Gene, Thanks for demanding the Engel bully argue the facts.
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