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Technology Stocks : CYRIX / NSM

NSM 18.27

0.0%

Jul 31 5:00 PM EST

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To: FJB who wrote (21997)	12/11/1997 11:16:00 PM
From: FJB	Read Replies (4) of 33344

Indeed, Intel execs insist that their gross margins will remain above 50%. But, says one Intel insider, "if the sub-$1,000 category grew to more than 50% of the PC market, we couldn't sustain our gross margins." Fear of collapsing computer prices at first drove Intel into denial about the low-cost-PC phenomenon. Until November, the company stuck to its well-honed marketing message, enticing customers to buy Intel's latest chips. That included a $100 million ad campaign this quarter to promote the Pentium II, including TV ads of chip-plant workers in clean room "bunny suits" dancing on Broadway. businessweek.com Uh oh! Houston, we have a problem.

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