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Technology Stocks : Intel Corporation (INTC)

INTC 41.41

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Dec 5 9:30 AM EST

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To: Tenchusatsu who wrote (63961)	9/4/1998 4:41:00 PM
From: Paul Engel	Read Replies (1) of 186894

Tenchusatsu - Re: " I'm just arguing that Intel can't afford to just wish these competitors away, even if they aren't doing as well as they had originally expected. " I'm not arguing this point. What Intel HAS DONE, however, is become very aggressive in pricing and flexibility as soon as AMD's K6 hit the market and Cyrix's MediaGX was adopted by Compaq. Intel defended their "financial" turf and developed a unique segmentation strategy for marketing their products to different markets (levels of sophistication) and aggressively began new product planning and execution to meet these segments - Celeron, Mendocino, Dixon, Whitney, Portola, Xeon. This "reaction" by Intel has been exceptional and has caught AMD and NSM and IDT off guard - spinning all three of them into severe financial losses. By no means is Intel letting any competitor get a major foothold in any segment without suffering severe financial damage. And Intel's resources have been marshalled to address as many segments as possible with specific product aimed at maintaining and expanding their long term revenues. Paul

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