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Technology Stocks : Intel Corporation (INTC)

INTC 33.60

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3:58 PM EST

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To: Joey Smith who wrote (65482)	9/26/1998 1:51:00 PM
From: gnuman	Read Replies (1) of 186894

Joey Smith, re: <You're wrong. Intel still has brand equity in this segment.> I don't believe "Brand Recognition" plays any factor in whether or not a business can be considered a commodity business. For example, in the food and drug industries there are numerous "generic" brands that have little or no recognition. Loosely interpreted, a commodity business is one in which there are two or more competitors vying for market share with similar products. (In this case, three or more). One of the ingredients is that pricing is driven by the existence of competition, as opposed to a proprietary market in which one supplier is able to set prices pretty much at will. I think you will have to agree that Intel's pricing strategies have changed rather dramatically with the advent of viable competition. I think also that Celeron was introduced as a commodity product to gain ground in the segment-0 market in response to AMD and Cyrix. Right now I see PII, (lower speeds), Celeron, Flash, graphics, StrongArm and systems as Intel businesses that could be considered in the commodity arena. Just my opinion.

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