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Technology Stocks : Intel Corporation (INTC)
INTC 33.73+0.3%11:42 AM EST
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To: AK2004 who wrote (52588)4/9/1998 8:26:00 PM
From: BelowTheCrowd  Read Replies (1) of 186894
 
It's worth noting that Dell hasn't jumped into any of the "low price" markets. Which makes sense, because his primary market is small businesses and sophisticated users, who are unlikely to occupy that space.

It's worth remembering that the sub-1000 PCs are mostly a retail phenomenon, and that retail is still a relatively small part of the overall business. Business users know that the support costs far exceed the hardware costs on their purchases, and aren't likely to "save" a few hundred dollars just to buy a machine which is not upgradable or easily supportable. That market is pretty solidly still in the 1000+ range for a machine with few glitzy features (ie, little multimedia, basic CD-ROM, etc.)

All in all, Intel is doing what they do best. Attacking and defending the most profitable segments, and maintaining enough of a presence everywhere else to keep their competitors truly miserable.

The word in the Valley is that NSM is going to LOSE money next quarter. A friend who works there pretty much admitted that the latest "computer on a chip" announcement of something they said six months ago and STILL haven't moved on. Jerry Sanders is supposedly thinking of stepping down at AMD, to answer shareholder's gripes about too many perks and too few results. It looks like the "keep them miserable" strategy is working...

mg
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