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

To: Paul Engel who wrote (109611)	9/10/2000 1:42:46 PM
From: Dan3	Read Replies (1) \| Respond to of 186894

Re: Maybe you can explain why AMD is DOWN over 30% from their highs? Can't explain it - and it cost me a lot of money, too. I think it's a combination of P4 fears and the overall semi sector being down. The interesting thing about recent computer pricing is that Athlon sytems are selling for about the same price as PIII systems, meaning that Intel is being forced to meet or come very close to Athlon prices with its large customers - and Intel doesn't have AMD's high binsplits. Q3 won't be too bad for Intel, but by Q4 AMD will be shipping millions of 1+ GHZ processors. Close to a majority of the chips AMD ships for Q4 will be 1.1, 1.2, or 1.3 GHZ. A 1 GHZ chip will have a quoted list (quan 1000) price around $200 and a real price to OEMs around $125 after discounts, advertising allowance, etc. Processors running at less than 1 GHZ will be $100 or cheaper at OEM quantities. Intel will be doing little more than sampling chips running faster than 1GHZ in Q4. Looks like Intel is in for a real ASP whipping this fall! :-) Dan PS - If Intel ASPs drop by $50 on 35 million CPUs, costs stay the same but revenues, and therefore profits, drop by $1.7 Billion. What were Intel's total profits this quarter? How fast are their costs rising with the accelerated FAB construction program in combination with the expensive pushes into dot com businesses?