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Technology Stocks : Intel Corporation (INTC)
INTC 43.48+8.6%3:59 PM EST

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To: Petz who wrote (41757)12/8/1997 9:54:00 PM
From: greenspirit  Read Replies (1) of 186894
 
John, how do you figure barriers to entry in the microprocessor market are going down?? On the contrary the barriers to entry are soaring. That's one of the main reasons Cyrix was bought out by NSM.

Fad costs are skyrocketing with every new plant. If anybody is really serious about competing with Intel, they better be ready to shell out 5-7 billion bucks. If Intel really felt threatened by any company, they would simply slash the price of chips to rediculously low levels and crush the competition. Making 5 billion dollars in profits gives them alot of flexibility.

Michael

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