It's great to see the posts on insider ownership. Looks like Berg has ben on a buying streak since last year - June '96 to June '97 nets a 300k share increase. Add in the recent 100K = 400K.
The $989 price for a complete P166 MMX system is not a fluke. The major componenets, HD, MPU, memory, and monitor, have come down in price to make this posible; OEM/VAR cost for MPU $125+ 16MB RAM $35, +14" monitor $150, +4MB S3 $38, +33.6 modem $32, +24x CD-ROM $60, KB $15, mouse $5, case & supply $35, 512k Pentium motherboard $45, 3.2 MB HD $175, FD $15, 80 W speakers $15, software $80 = $830. That's about $159 gross mark-up or 19%. Not bad considering that retailers make most of their profits on selling add-ins, software, peripherals, service contracts, and training.
That's why the C6 P200 will need to sell for about $90-$110 and will be at around $75 early next year. Intel's strategy is to take away the major price differential between pricing of their Pentium parts and their competitors. No one said it was going to be easy.
On the other hand, the move down in pricing is stimulating demand from new and second computer users. Intel has been very agresive on pricing of the P166 but less so on the >=P200 class parts. |
