Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: f.simons who wrote (87911)	9/7/1999 9:19:00 AM
From: Bill Jackson	Respond to of 186894

f.simons, Compaq has a crippled model and they may well totally fail if they do not adapt and abandon their channel strategy as others, like Dell, disintermediation is the name of the game and Compaq must play to survive. No segment will be immune to this. Intel is indeed profitable and they decided to reduce profits to kill AMD with price cuts on items that AMD makes and none on Intel unique parts so they could be a sole supplier of parts and not have to cut prices as before. This is the same strategy that the oil barons used in the 1900s. They would undercut a small oil seller in an area using profits from distant areas where they had a monopoly to subsidize it. Now that was a commodity, oil, all the same. Now we have parts that differ. some intel alone makes=high prices to subsidize those that AMD and Intel make that fill the same niche= cross subsidized. It is true. Bill