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

To: Road Walker who wrote (109509)	9/8/2000 3:26:26 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 186894

John, RE:"Intel’s RDRAM Rebate Deal In an attempt to offset OEM reluctance to gamble on RDRAM, Intel has resorted to a $70 ‘Rambus Rebate Deal’ for its P4 OEM customers. This rebate will apply to Willamette+850 system manufactured during Q4’00, and drop to $60 a pop in Q1’01 after which the program will be abruptly terminated. In Q2’01 OEMs are expected to begin re-directing their attention to lower cost DDR platforms using the Brookdale chip set. Intel will have no reason to subsidize these lower cost SDRAM platforms. It is questionable if this rebate deal will be available to the board makers who were burned so badly over the last year by Intel’s numerous problems with its 820 platforms. It seems unlikely that Intel would produce a rebate unless the manufacturer is able to prove that systems actually shipped with RDRAM populated in the system. Considering the hardships already suffered by the board manufacturers based on limited RDRAM availability and high prices, this scenario seems unlikely. Worse yet, Intel’s rebate program could be a signal to DRAM makers to raise prices on 800 MHz RDRAM parts. In the face of a potential squeeze on 800MHz RIMM availability, the shrinking market for 820 and 840 systems may not provide a large enough market to move the slower RDRAM bin splits – besides there will be no RDRAM subsidy from Intel on these systems" ---- I remember all the laughter when AMD was "sending a $20 bill with each K6-2". Now Intel supposedly sending a $50 and $20 with each Willy... Heck, I thought they would send a Timna qith each Willy but the Timna was delayed.. <G> The author appears to be right on the money though. RDRAM makers will just add it back to the price they charge. You would think Intel would learn what happens from when the government subsidies something... Jim