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Technology Stocks : Intel Corporation (INTC)
INTC 35.81+0.2%Nov 25 3:59 PM EST

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To: MSPutnam who wrote (77)11/28/1995 12:18:00 AM
From: Joan Osland Graffius   of 186894
 
I have a different view of this issue.

Intel competes with other companies that manufacture components; chips, processors and boards including mother-boards, and if someone can manufacture the components and boards with competitive price for performance, PC manufactures will buy from the low cost provider. I believe the PC prices depend upon the PC providers ability to assemble, package and ship these components in a cost effective manner. Now if Packard Bell is selling their PC's with an unacceptable profit margins to pay the bills, obviously they will be out of business. I personally do not believe one PC manufacture will make a difference. If there is a market and if someone can manufacture the same product cheaper, they will!!! Good management will not sell products for a loss and put themselves out of business.

By the way who else manufactures PC mother-boards with Intel processors other than Intel. It was my understanding that Intel currently is the only company that is manufacturing these boards which makes them a sole source provider, and can charge what the market will bear.

Joan
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