Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 322.31

-5.6%

Jan 30 3:59 PM EST

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To: Big Bucks who wrote (17179)	3/5/1998 4:07:00 PM
From: Gottfried	Read Replies (3) of 70976

Big Bucks, can they really save 60%? Seems high to me. GM fnews.yahoo.com [snip] Intel is also planning to move to a new segmented market strategy in April when it introduces its new Celeron microprocessor for the under $1,000 PC market. Although that move could push gross margins down closer to Intel's long-term 50% range from the 53% range expected this quarter, Intel also stands to benefit this year from a broad production shift to factories producing circuitry at 0.25 microns from those using 0.35 micron tools. That change alone could cut manufacturing costs by 60% by year end, according to Micro Design Resources. That would moderate the gross margin problem.

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