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Technology Stocks : Intel Corporation (INTC)
INTC 34.50+2.6%3:59 PM EST
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To: AK2004 who wrote (52570)4/9/1998 5:04:00 PM
From: Frank DiLorenzo  Read Replies (2) of 186894
 
Intel is very smart to segment its market.

Intel is using Marketing 101 to segment its market with Celeron at the very low-end, Pentium MMX and Pentium II at the low to mid end, and soon Merced and other chips at the high end for advanced PCs, workstations, and servers. If I thought the low end was were the action is at (i.e. profits) I wouldn't own the stock. The money is in the mid to high end. According to Gartner Group, Intel will jump to a new level when businesses begin to upgrade when the new Merced chip comes out. If this launch is successful then Intel will do extremely well. Also, don't discount Intel's moves into networking equipment. They don't need to compete with Cisco at the high-end. There will be great demand for networking from home users and small to mid sized businesses in the coming years. Also, I would like to see Intel create an "Intel Online" website, similar to what Yahoo has successfully done with its own site. Finally, there are millions of cars and TVs out there that Intel could expand its market share to. The recent news with Microsoft is good for the future. Also, I believe Intel will partner with other firms to create the best set top box available.
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