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Technology Stocks : Intel Corporation (INTC)

INTC 46.96

-6.5%

3:39 PM EST

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To: P.Prazeres who wrote (4748)	11/1/1996 9:58:00 PM
From: Paul Engel	of 186894

Paulo - Re:"Pentium Pro price cuts" Intel had committed to Pentium Pro price cuts in November, even when they announced in August that there would be no corresponding price cuts in the Pentium line after August or September.(Note - these price cuts were MORE than normal, mitigating the fact that they would be the last ones for the current year.) From a customer standpoint, they (Intel) ought to be seen as keeping their word, despite the opportunity for price gouging during the current Pentium Pro "shortage". As for Wall Street - who knows. The effect on the stock price could be argued as positive or negative. My suggestion is to ignore any knee-jerk reaction on Monday, and hang in there for the long haul. Intel's long term/near term strategy is most likely geared to replacing Pentium devices with Pentium Pro devices. No competition! Not even from Cyrix' s upcoming M2 & AMD's K6 - these are not socket compatible. Maintaining the consistent price reductions should convince customers that the Pentium Pro will be the afffordable upgrade in the future. Paul

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