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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: sammaster who wrote (74608)	1/26/2000 11:26:00 PM
From: Knighty Tin	Read Replies (7) \| Respond to of 132070

Samir, I don't believe that Intel production was Dell's real problem. Even those half wits would have been smart enough to move to the Athlon if Intel was making them miss their quarter. And the bulging warehouses full of Intel Inside boxes at every one of the distributor companies also puts the lie to that concept. There may be shortages in some of the new crapola, but any good salesman can then move folks into the old crapola. After all, it's not like the new stuff does anything better. The new Rambus boxes are so great that they are not even included in the next generation talks, and DDR seems to be winning the battle. Intel may be too smart to invest much in this dying business. Yes, volume will stay high, but margins are yesterday. They are trying out some higher margin businesses. So far, they have found DSPs very profitable and even flash has made a temporary comeback, though nothing can match their sector fund profits. The problem is that these niches are dinky compared to mpcs.

To: sammaster who wrote (74608)	1/27/2000 7:42:00 AM
From: Earlie	Read Replies (1) \| Respond to of 132070

Sam: Dead on comment. The problem is not demand, it is supply. In an earlier post (to FF if I recall correctly), I mentioned that Intel engineers have commented that the current shrink really pushes the envelope and that yields cannot be expected to remain robust without new technology. The real problem is that AMD's Athlon is basically faster than anything Intel can produce. Sure, the best dies can be pushed out the door rated at higher clock speeds, but the yield at this level is puny. As you point out, Intel's pricing policy says it all. Best, Earlie