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Technology Stocks : Intel Corporation (INTC)

INTC 46.48

-3.6%

Feb 12 3:59 PM EST

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To: Brian Hutcheson who wrote (5336)	11/17/1996 2:41:00 PM
From: Paul Engel	of 186894

Brian - Re:" drop in a K6 onto the board and get superior performance at ( especially on 16 bit software) much less cost..." Herein lies the rub. At "Much Less Cost" implies that AMD will be selling their K6 up against Intel's Pentium MMX - at a significantly lower cost than the Pentium MMX. AMD can do this - but what will they make in profits when their ASPs are much less than Intel's ASPs? Especially when they are selling an 8.8 million transistor chip against one with half that amount of transistors (4.5 million). I certainly wouldn't want a business plan in which my selling prices were dictated by my most hated and feared competitor. Paul

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