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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (3010)	9/22/2000 11:49:53 AM
From: T L Comiskey	Respond to of 65232

Get Thee to a Strip Joint Dr's Orders....... Good for the blood pressure They say Friday September 22, 11:42 am Eastern Time Don't panic on Intel say tech firms, analysts (UPDATE: Releads, adds Compaq comments) By Lucas van Grinsven, European technology correspondent LONDON, Sept 22 (Reuters) - Technology companies and analysts scrambled to soothe fears on Friday after microchip giant Intel (NasdaqNM:INTC - news) set world stock markets on fire with a revenue warning. Shares of personal computer makers and semiconductor manufacturers fell up to 10 percent after Intel said it would grow third quarter revenues by 3-5 percent compared with the previous quarter, rather than 7-9 percent, because of weak European demand. Intel left the industry puzzled about the reasons behind slower demand, but analysts quickly dismissed the idea that the U.S. chip maker would infect the entire industry. ``It appears that Intel's significant shortfall in Europe is company-specific,'' said investment bank Bear Sterns in a note. Merrill Lynch analyst Andrew Griffin said the warning ``is certainly industry (microprocessor) specific and cannot be extended to the rest of the sector''. Semiconductor analyst Nicolas Gaudois at Morgan Stanley Dean Witter said: ``We don't see a reversal in PC sales.'' Market research group IDC said preliminary data showed that PC unit sales in Western Europe would grow by some 14.5 percent in the third quarter, after respective 8.1 percent and 7.2 percent growth rates seen in the first and second quarters. ``The fourth quarter is going to be strong also, with 19 percent growth,'' said IDC industry analyst Andy Brown. Most of that growth would come from consumers who want faster PCs to play digital video disc (dvd) games and benefit from high speed Internet access. BUSINESSES SLOW TO BUY NEW COMPUTERS However, corporate demand remained slack as companies saw few incentives to invest in new computers after the upgrades ahead of the millennium change. ``We're getting slightly conflicting signals,'' Brown said. ``There is some uncertainty whether the business market is picking up.'' This was underpinned by Asian-European computer maker Fujitsu Siemens which told Reuters on Friday that consumer demand was growing strongly, but it did not expect the corporate market to strengthen in the fourth quarter. Siemens was down 4.6 percent at 151.35 euros at 1145 GMT. Leading computer producers agreed that Intel's problems, wherever they may have come from, were not theirs. Compaq , the world's largest PC maker, said European demand was ``tracking within our expectations.'' Dell Computer Corp. , down 9.7 percent at $34.25 was also bullish. The world's number two PC company, said it was still expecting a recovery in European corporate demand for its computers. U.S. computer group Hewlett-Packard said the PC industry remained on track for 15 percent growth year-on-year. International Business Machines Corp. would not comment ahead of third quarter results next month.