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Technology Stocks : Intel Corporation (INTC)
INTC 36.15-0.6%Dec 24 12:59 PM EST

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To: John Chen who wrote (39843)11/10/1997 3:39:00 PM
From: Maverick  Read Replies (1) of 186894
 
INTC plans low-end machine, Part II
''To help get the costs out of the system, we need to focus on 'soft everything','' Aymar said.

But even as Intel laid out plans to address the very low end of the marketplace, it reiterated its
belief that most of its customers will be buying high-end systems.

By the year 2001, Intel's high-end offerings will include powerful servers -- systems that
manage communications and store data for hundreds and thousands of users -- using multiple
processors and costing as much as $500,000. By then, using 64-bit processors, Intel is expected
to have as much as 31 percent of that market, predicted the market research firm International
Data Corp.

For the most part analysts seemed pleased with Intel's message, after months of decrying the
company's recent financial performance.

''There were a couple of issues that I was concerned about, and one of those was Intel's response
to the sub-$1,000 PC marketplace,'' said Nimal Vallipuram, an associate director for the financial
services company Bear Stearns & Co. in New York. ''I think what they've outlined is an
impressive approach to that marketplace.''

The market also responded positively to Intel's plans as the company's stock went up by $3.94 to
close at $77.44 Friday.
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