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Technology Stocks : C-CUBE...How will INTEL's built in MPEG affect CUBE?
CUBE 37.09+0.3%12:11 PM EST

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To: Paul Chiu who wrote (4)5/2/1996 6:49:00 PM
From: olduser   of 20
 
Intel's margins shrinking? In their 1Q financial results, they stated they'd be above 50% in gross margin. Motherboard sales, which produce lower gross are expected to fall but component sales, which produce more, are expected to rise. Intel's margins are almost obscene.

The following excerpt from some Intel announcements in Hong Kong may prove ominous to companies that do multimedia chips and or plug-in boards for PCs. This was in the May 2 Nando Times.

Intel chairman Andrew Grove said the new chips would enable personal computers to be used in video
conferencing, for accessing the Internet and home entertainment without needing special power-enhancing
add-on cards. He called the concept, to be based on Intel's top-of-the-line Pentium chip, the "connected
PC."

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