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Technology Stocks : Intel Corporation (INTC)
INTC 36.66+1.3%Dec 29 3:59 PM EST

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To: Judy Muldawer who wrote (61128)7/25/1998 1:54:00 PM
From: Paul Engel  Read Replies (2) of 186894
 
Judy - Re: " that there will be a chip shortage as well as a drop in price effective Sunday "

I would bet that the "shortage" is merely a "hole" in the inventory pipeline resulting from distributors NOT PLACING LARGE ORDERS for Intel CPUS in anticipation of the upcoming Intel price cuts.

Usually Intel avoids this by guaranteeing "Price Protection" for their OWN distributors, but I have heard from one distributor that this "protection" was lifted recently for a short period of time.

Once the cuts go into effect, the pipeline will be re-stocked.

Paul
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