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

To: rudedog who wrote (111002)	9/23/2000 4:49:14 PM
From: EricRR	Read Replies (3) \| Respond to of 186894

I also believe there are still significant shortages in some key areas - and high revenue, high margin areas at that, like Xeon parts. So it looks like it was an error in mix forecast as well as the overall numbers. Or maybe they just can't make the Xeons fast enough, whatever the forecast was. I just don't understand why the befuddlement continues. There is no such thing as "demand" for any particular speed grade, taken on its own. I don't believe that there ever was a period of time where Intel was unable to produce enough CPU's to supply the market. Had the Athlon never exhausted, Intel could have continued to pump out Katamai parts, and managed a slow and conservative transition to coppermine, as had been planned. The problem is simply competition- AMD. Intel is unable to supply the parts people want, because AMD has raised expectations. AMD forced intel to rush manufacturing changes. AMD forced Intel aggressively ramp higher speed parts, and cut prices. If AMD's Athlon didn't exist, would Intel still be planning this hair brained Willy rollout, where they have to give a "rebate" to OEM's in order to offset the price of Rambus? Would they have released the 1.13GHz part? Would Intel leave a huge 400MHz gap in their product lineup? Would they threaten the Xeon gravy-train by rolling out Foster in low volumes early? Ahkok says AMD is "road kill" because Intel can supply %120 of the market. But at what price, and at what performance? AMD and intel's parts are competing. DEAL WITH REALITY!!!!!! Right now AMD's parts are cheaper and faster. It's that simple. Why do people have such a hard time accepting it? But that does not explain to me how Intel went so suddenly from undercapacity to glut. are you saying they were forecasting demand from the little guys (or their distributors, who would have had orders in maybe) which did not come through? My sense is that those same distributors are where some of the big guys were going with their duplicate orders. You presume that intel is being honest about what is going on. Why did Compaq, HP, and IBM and Taiwan Semiconductor all refute any demand downturn in Europe? The damn is breaking, and Intel PR has run out of fingers.