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Technology Stocks : Intel Corporation (INTC)
INTC 46.96-2.8%Jan 16 9:30 AM EST

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To: gnuman who wrote (40465)11/16/1997 2:07:00 PM
From: Paul Fiondella  Read Replies (1) of 186894
 
Comments on Christmas selling season

The Compaq flyer was also in the NY TImes this morning. The $799 MEdia GX 180 system includes a beefed up graphics processor. Compaq is selling the system through at least 33 major office, computer, and electronics national chains. That means the system will be everywhere this Christmas.

At this point most box manufacturers have in inventory what they are going to sell for Christmas. All Intel has in the under $1000 category, not counting what is being sold without Intel approval from the glut of inventoried classic CPU's in the channel, is the P166MMX.
In the next tier up $1200-1600 Intel is heavily represented with overpriced 233MMX's.

Although first time computer users may still think they have to spend $2000 on a computer, that will not last long with these Compaq inserts in every newspaper. Compaq is actually educating the public to lower their price expectations. This is going to create another strategic inflection point for Intel.

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