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Technology Stocks : Intel Corporation (INTC)
INTC 34.50+2.6%Nov 21 3:59 PM EST
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To: Jim McMannis who wrote (80310)5/1/1999 11:38:00 AM
From: Process Boy  Read Replies (2) of 186894
 
Jim - "Not sure what this brings to Intels bottom line because these mobos will likely be coupled with Celerons but Intel really had no choice but to create this chipset."

Intel has responded to market reality, with what appears to be a more than adequate product.

I'm not worried about Intel's "bottom line". I'm sure Intel is making a profit. Jim, by the tone of your posts I take it you believe something like Intel wails and nashes teeth with every Celeron sale. I can more than assure you this is not the case. The market reality is that Celeron meets the demand of a significant market segment. Intel cannot change the fact that this segment exists. Initially when the segment first materialized, Intel stumbled. But I believe they have recovered nicely.

If Intel didn't think they could make money at the low end, they would just cede it to the competitors. But I seriously doubt this is going to happen, because Intel can and does make money at the low end. This is possible because Intel has a very efficient manufacturing organization, IMHO.

Actually, Barrett has been quoted as saying that long term, the Value Segment may be of ultimate benefit by facilitating the expansion of the overall market.

PB
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