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Technology Stocks : Compaq
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To: Elwood P. Dowd who wrote (19492)3/5/1998 2:17:00 AM
From: ed  Read Replies (1) of 97611
 
Intel's inventory problem will benefit:

1) BOX makers:
The price of PC will be even lower, and more people can affor PCs and will expand the market significantly.

2) MSFT:
Every PC sold will need one copy of OS.

So, Intel will need to switch to high volum lower profit margin model for its low to
middle CPU business !!!! It will need much more FAB capacity, which means use the foundries for its low to middle end CPUs.
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