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Technology Stocks : Intel Corporation (INTC)
INTC 37.32+1.8%3:59 PM EST

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To: Road Walker who wrote (38960)11/5/1997 8:42:00 AM
From: Paul Fiondella  Read Replies (5) of 186894
 
How can Intel compete with a $219 for a complete computer system?

Look at these VAR prices

In a recent issue of a major magazine that goes out to computer resellers here are the prices they pay for systems they resale.

$219 --- Cyrix Media GX 150MHz system with 33.6 Modem & Sound Card
$299 --- Cyrix 6x86 PR200+, 512K cache, 4MB 3D VGA, sound card & modem
$529 --- Cyrix 6x86MX-PR233 512K cache, 4MB 3D VGA, sound card & modem

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These are the new prices for computers. How can Intel possibly compete in a market in which its chips prices are nearly as much as an entire computer system?

You can bet that Cyrix and AMD are out to take away the entire low end market from Intel. The channel is running out of dumped classic Pentium chips with which to asssemble inexpensive computers so they are going to turn to Cyrix and AMD.
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