SSB analyst hasn't a clue about Intel and I agree did a disservice to their clients...added to my LT position in Intel especially after reading comments on the IBM thread that said that Intel was positioned to take biz from Big Blue and looking at all the deals and new product rollouts Intel has done makes me believe that the 4Q and especially Q1 will be impressive...look for Intel to take out old high by yearend.
Also...............
Posted at 6:45 p.m. PDT Thursday, October 28, 1999
Intel sees strong demand, plans
PC-on-a-chip
Reuters
SAN FRANCISCO -- Intel Corp., the world's largest computer
chip maker, said Thursday that it sees very strong demand with
tight supply this quarter, but that it intends to meet all the customer
demand for its chips.
Speaking to analysts in a Webcast conference call conducted over
the Internet, Intel executives on Thursday also talked about a new
chip in development, code-named Timna, its first
''system-on-a-chip'' product for very low-end PCs or devices.
In general, Intel said it is seeing very strong demand in the fourth quarter, amid a tightening of
supply, as it has just transitioned to a new manufacturing process for new products.
''We expect supply to be tight but that overall we will meet commitments to our customers,'' said
Sean Maloney, Intel's senior vice president of sales and marketing. On Wednesday, a Salomon
Smith Barney analyst cut earnings estimates on Intel, in part due to concerns that Intel will not be
able to meet demand for its new Pentium III processors, launched Monday.
Maloney also said that the company believes that PC prices are currently stabilizing, due to a
tightening in supply of components such as memory chips.
''Over the last two years, there has been a steep decline (in PC prices),'' Maloney said. ''What we
are seeing is a tightening of components, that appears to be halting the decline of PC prices. It
looks as if PC prices have stabilized after a fairly lengthy decline.''
Intel also pointed out that in the low-cost or value segment of PCs costing under $1,000, it has
continued to gain market share after an initial slow start with its low-cost Celeron processor.
''Intel's market segment was under 30 percent,'' said Paul Otellini, executive vice president, Intel
Architecture Group. ''In the intervening six or seven months, we have doubled and have 60 percent
of the sub-$1,000 market.''
Otellini also laid out product plans for the company and reiterated its previous comments that it
would have a Pentium III processor running at speeds of 800 megahertz in the first half of 2000 and
a one gigahertz processor (1,000 megahertz), currently code-named Willamette, in the second half
of 2000.
Otellini also disclosed plans for the new Timna processor, targeted to low-end PCs, which will
integrate all computing functions onto a single chip.
''This is our first product that is a single-chip PC,'' Otellini said, adding that it would be for very low
cost PCs or other small computing devices. Timna will be released in the second half of 2000, but
no other details were disclosed.
This is the first product by Intel to embrace the vision of a ''PC-on-a-chip'' which has long been
espoused by National Semiconductor Corp.'s chairman and chief executive, Brian Halla. In July
National unveiled its first product in this arena, called Geode, targeted to TV set-top boxes.
For mobile products, Otellini said Intel plans Pentium III processors running at 700 megahertz in
the first half of 2000 and 750 megahertz in the second half of 2000.
Otellini also said that Intel's new 0.18 micron manufacturing process technology, combined with the
new packaging that eliminates the costly cartridge in its new Pentium III family will save Intel in
manufacturing costs.
He estimated a 20 percent decrease in manufacturing costs for Celeron processors and a 50
percent decrease in manufacturing costs for Pentium III chips, using the 0.18 micron technology,
which creates finer linewidths and enables more transistors on a chip.
Intel also said it sees ''little to no'' impact on its business, from customers slowing down purchases
to deal with the Y2K computing problem.
''We see little or no impact, based on a careful study of business conditions, backlog and
inventory,'' said Maloney, reiterating Intel's views about Y2K that were initially made on its third
quarter conference call earlier this month.
Craig Barrett, Intel's president and chief executive, said that Intel will continue to expand its efforts
to become the building block supplier of the Internet economy by making acquisitions in the
fast-growing networking and communications sectors, but he was not more specific.
''We have been doing about one acquisition a month,'' Barrett said, of Intel's hefty acquisition
appetite this year. ''As we go forward, and I'm not making any projections here, but I do anticipate
that we will do acquisitions in this networking and communications space.'' |
