Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 33.63

-4.2%

3:59 PM EST

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To: Mary Cluney who wrote (48921)	2/26/1998 3:47:00 PM
From: Jim McMannis	Read Replies (2) of 186894

INTC is down because of the rumors that IBM will fab K6's thus helping AMDs under-supplied demand for K6's. Compaq is down because Smith Barney downgraded them this morning because of inventory channel problems...This is really a lot of baloney because CPQ is already changing their inventory channels... Meanwhile IBM and CPQ make good money selling K6 boxes...so with IBM making K6s that can't hurt their bottom lines... IBM is the double winner here...they own the FAB...so they either get cheaper K6's depending on the deal with AMD or make money selling them to AMD. My guess is the former because AMD is likely cash strapped so IBM will get chips for manufacturing cost like they did with Cyrix... Then, IBM can put some of those chips in boxes and make even nicer profit margins. Also means more chips for Compaq and other OEMs...all at the expense of Intel..or so the market thinks today. IBM and CPQ are clearly out to make other CPU suppliers viable. This is actually quite common in the business world. My customers used to purposefully bought inferior products at even higher prices than mine just so the alternative suppliers would stay in business...they thought that was fair. Not to have just one supplier, that is. Jim

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