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Politics : Formerly About Advanced Micro Devices
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To: Maxwell who wrote (34457)7/14/1998 1:57:00 PM
From: Tony Viola   of 1576081
 
Maxwell, Re: "The bottom line is that can Intel grow in revenue. In the investor eyes, cutting cost
to improve margin is just not like increase in profit from revenue increase quarter
to quarter. You know what I mean."

I know what you mean and agree that is the desirable way to grow profits (through revenue growth). However, there is another I company that has been doing it the other way (growing profit through cost cutting and buying their own stock). It's IBM, and their stock has been doing just fine lately.

Re: " Also Intel
margin will rise due to Xeon not Mendocino. Why? The reason is that Xeon is
target for corporate and high end users and they have money to buy it."

I think Intel margins will rise due to both Xeon and Mendocino, albeit more because of Xeon. Intel is now into "segmented markets", of which Xeon and Mendocino represent two. I believe Intel will use a lot of engineering, manufacturing and marketing muscle to make sure both of these segments pull their weight.

Tony
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