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: JDN who wrote (88668)	9/22/1999 2:58:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

JDN, Trust me on this one, gross margins will be lower. haha JDN Just an off the wall comment on the discussion here: IBM is now making more money, margin wise and otherwise, on software and services than they are on their long time cash cow hardware. And, that's not just mainframes, but all hardware. You do seem to be coming from a position of "knowledge power" on this one, though. Tony

To: JDN who wrote (88668)	9/22/1999 3:43:00 PM
From: Paul Engel	Respond to of 186894

JDn - re: "gross margins will be lower" Well, what if they are ? It represents INCREMENTAL NEW BUSINESS and REVENUE. And Intel has always maintained that they want to increase REVENUE and earnings - and not necessarily gross margins. Paul

To: JDN who wrote (88668)	9/22/1999 6:08:00 PM
From: Harry Landsiedel	Read Replies (2) \| Respond to of 186894

JDN. Re: "Trust me on this one, gross margins will be lower." You're probably right. After all, it would be tough to add any business to Intel's mix when the GM% was close to 60%. However, Intel's focus (properly so IMHO) has always been on Gross Margin Dollars not "%". They figure 5% of something is better than 100% of nothing. I too was initially surprised that Intel would go into this business but my guess is that it was part of a multi-pronged push into the Internet space, building on Intel's core competencies. Over time they and (we) will see which of the "prongs" works best and that will be the growth engine. HL