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Technology Stocks : Intel Corporation (INTC)
INTC 34.72-2.3%Nov 17 3:59 PM EST

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To: The Vinman who wrote (58863)6/26/1998 5:22:00 PM
From: Barry Grossman  Read Replies (3) of 186894
 
Vinman,

<<PC makers are producing cheaper machines and demanding lower chip prices>>

You have it backwards.

Chip prices are going down because Intel (90% of the supply) keeps dropping their prices every quarter (because of their incredible manufacturing prowess) and the competition (10%) keeps dropping their's below Intel's in order to jump start their sales and keep the product moving - even if it moves at a loss.

The result of all this on the market is that PC makers can sell their products for less and less, the price the buyers pay at the margin keeps dropping which increases affordability and boosts sales, and INTC makes every increasingly larger and larger piles of money while the competition takes it in the shorts.

Pretty good game plan - IMO.

Barry
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