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Technology Stocks : Intel Corporation (INTC)

INTC 46.96

-2.8%

Jan 16 9:30 AM EST

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To: Mary Cluney who wrote (54942)	5/1/1998 4:53:00 PM
From: Cycleman	Read Replies (3) of 186894

Mary and all: But what I am afraid may have a lasting effect on Intel's profitability and growth is the price deterioration now taking place. Yesterday I was quoted about $2,300 for a Dell 400x Optiplex with 128k ram and a 6gb hd (excluding the monitor). This is really something. I am used to paying over $4k for the latest and greatest Intel-powered box every couple of years. How is Intel going to make up for the approximate $2k bite that has been taken out of their pricing? Also, as far as the corporate market is concerned, we have recently started a newish business that will design and install pc networks for small to medium sized companies, and we are finding that many clients do not want to pay more than $1,000 to $1,500 per box, and so that is what they are getting, rather than the 300 or 400x boxes. Meaning that at least part of the business market may be shifting downwards, like the consumer sector. Cycleman

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