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To: BillyG who wrote (17888)5/30/1998 3:23:00 PM
From: pat mudge   of 25960
 
Billy --

I'm certain we've all read every Intel article we can find, but for those who haven't (perhaps returning from another planet), here's an interview with Barrett:

<<<
IntelCEO says still has winner with Merced

Reuters Story - May 29, 1998 18:19

SAN FRANCISCO, May 29 (Reuters) - Intel Corp. chief
executive Craig Barrett said the chip giant is disappointed
with the six-month delay of its next generation processor,
code-named Merced, but said the chip is still a "real winner."

He also emphasized that the delay is not a design issue and
it should not have a big impact on its competitive advantage.

"If I were to label the issue, it's one of program
management and getting all the bits and pieces pulled together
in the right order," Barrett said in a telephone interview. "We
are still very hot on the technology...I don't think a 6-month
slip is a major impact from a product standpoint."

Barrett pointed out that Merced is only the first in a line
of at least three procesors and that the other two follow-on
chips have not slipped in their schedules.

"This was a second half 1999 deal and even then it was a
product introduction so the revenue is going to be a small
piece of the Intel total revenue at that time frame," he said.

In the near-term, he said Intel will continue to roll out
32-bit Pentium II processors and its Xeon chips for servers.

"We have a whole series of products that are coming out
until Merced comes out," Barrett said, adding that its 32-bit
products will be sold in parallel with Merced for some time.

"You will see 32-bit and 64-bit products in parallel for
five to 10 years," he said. "If you look at the desktop
market...By the time you get 64-bit applications on the desktop
for the sort of things we do in our home, it will be some time
before we get into that space."

Barrett said that most of the computer maker customers who
were informed by Intel were absorbing the news into their
business models, but that he has not talked to any of them in
enough detail to discuss their reaction to Intel's news.

"You will always see a variety of response (from the
computer makers)," he said.

Barrett said the pushout has nothing to do with Intel's
announcement last month of its plans to cut 3,000 jobs, mostly
through attrition and some layoffs, adding that this project
with Hewlett-Packard is not one that it would cut staff from.

"It's a big deal anytime our programs slip," Barrett said.
"It's unfortunate...We are still very excited about Merced
technology. We are still very happy with the acceptance and the
general acceptance in the marketplace.">>>
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