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Technology Stocks : Intel Corporation (INTC)

INTC 40.17

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2:24 PM EST

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To: Tenchusatsu who wrote (65896)	10/6/1998 7:44:00 PM
From: alex pierson	Read Replies (1) of 186894

Re: To those who don't need faster processors, this same technological push will also allow Intel to drive costs down so that these customers can buy their low-end processors at lower prices. ---------------------------------- This is exactly what raises my questions. At that point will Intel's profits be able to hold up (even if their gross margins do). If ASP is $50 will they be able to sell enough machines to make up for the low profit per processor? Will knockoff companies steal market share even more? Will the chips finally become commoditized enough that margins even get killed? How soon could this happen? Is there a way around this? Alex P.

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