S.K. - Re: "chipmaker's CEO says Asian currency crisis is hampering sales in the region."
Good thing Intel sells its chips in other parts of the world, as well as S.E. Asia.
In Q397, Intel reported that 19% of its revenue came from S.E. Asia, which includes China.
Intel has also stated that China represents the major part of its S.E. Asia sales and that sales to China have, indeed, NOT SLOWED down.
So, of the 19%, 9.5% is non-China related and presumably is being affected by the S.E. Asian currency crisis.
Now, let's assume that sales in that region (representing 9.5% of Intel's total sales) drop by 15%. That would reduce this region to 8.1% of Intel's total sales, a reduction in 1.4% on Intel's total world wide sales.
That 1.4% reduction reprents (according to my simplified assumptions) the approximate impact on Intel's sales - about $84,000,000 in revenue.
Indeed, Intel is DROPPING their Pentium/Pentium II prices by much more than 1.4% - so that system price reductions should eventually offset the impact of the local currency devaluations.
In effect, Intel is acting like a disinflationary force in the inflationary environment of S.E. Asia.
The question then is, can Intel make up for that 1.4% decrease by 1.4% increases somewhere else?
You make the call.
Paul |
