Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 35.53

-1.1%

3:59 PM EST

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To: nihil who wrote (63878)	9/3/1998 6:33:00 PM
From: ron delany	Read Replies (1) of 186894

I'm afraid I'm still a bit confused. Are you saying that the cost of manufacturing the chips per chip goes down so much based on the projected increase in demand that they can increase the margins more than the 20-30% price cut (ignoring for the moment the distribution across their product line) . In other words if they have a choice to make a million chips for $50 each or 20 million for $20 each then obviously they can sell the chip that costs them $20 for $20 less (say $50 instead of $70) and still make more per chip. i.e. $30 instead of $20 in that example. Is this the idea?

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