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Technology Stocks : Intel Corporation (INTC)

INTC 48.66

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2:29 PM EST

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To: Paul Fiondella who wrote (37070)	10/21/1997 3:36:00 PM
From: Larry Loeb	Read Replies (3) of 186894

Paul F. If you want facts, you might want to stop spouting uninformed rhetoric and simply ask questions. It would be somewhat less controvertial and generate fewer flames, but it might better serve your stated purpose: I'm not here to put down Intel, I'm here to get something out of this thread In response to your earlier question to me re: variable pricing and cost: The lowest stated price on Intel's price list (for volume customers) is $95 for the August price list. According to the conference call, I understand that this will probably stay the lowest price, but the chips will change. The $70 cost per die is based on some calculations I made with some professionals in the industry. If you don't believe those, you might want to consider that AMD priced their K-6 at approx. $75 per chip. They expected to make a profit at this price (although they expected better yields). While AMD's variable cost per die (as opposed to cost per good die) is lower than Intel's (because their die are smaller due to the 5 metal layer process), it isn't so much lower that they could expect to cover both their fixed and variable expenses at $75 (to generate a profit), unless their costs were significantly below $75. This leaves plenty of room for Intel's costs to still be below $70 (although even at $75, they would make a variable profit). I hope you find this useful. You might even find Paul Engel to be a valuable source if you ask him nicely. He used to work at Intel and is responsible for at least one of their patents. You should note that, while he may burst some of the unrealistic expectations of AMD and CYRX holders, he also holds shares of each (at least until recently). Good luck in your investments. Larry

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