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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: WTSherman who wrote (84014)	6/20/1999 10:29:00 PM
From: kapkan4u	Read Replies (1) \| Respond to of 186894

<WT - RE: Well, you know in fact they do...or almost. Auto makers have to come out with new models each year(a very expensive proposition) in order to feed and advance their market. If you look at the price for a top of the line INTC processor its remained fairly stable the past few years, its the older "models" that have depreciated. The car business works in a similar way, though, its a lot more expensive for them to engineer a new car...> Here is the root of the problem for INTC. To grow revenue 15% a year in an environment where ASPs are dropping 15% a year they have to sell 30% more CPUs every year. ASPs have been steady in the past but many people, myself included, think that this is over. The ASPs will accelerate downward. There are many reasons for this, the biggest among them is the formidable competition that PIII is facing from Celeron. This coming Q2 will be a watershed event as far as ASPs are concerned, IMHO. Kap.