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

To: Amy J who wrote (113242)	10/12/2000 10:02:21 AM
From: milo_morai	Read Replies (1) \| Respond to of 186894

<font color=red>Why Mighty Intel Strikes Out Thursday, October 12, 2000 Jesse Berst, Editorial Director ZDNet AnchorDesk Seattle is gripped with Mariner fever. The team is making a rare run for the World Series by battling the Yankees, and fortunately for the Mariners, the Yankees are slumping ... sort of. Intel is in its own slump this year. Like all-stars who rest on their laurels, Intel has been slacking. I'll tell you why Intel is in trouble, and why next year won't be a championship season for them either. THREE STRIKES Intel was plagued by problems on three major fronts this year: Strike One: Changing Markets Intel's Sept. 21 profit warning sent its stock reeling, losing 40% of its value. Intel blamed the weak Euro. But the PC market is changing. Growth in PC revenues is projected to slow from 17% this year to 12% in 2001. Fewer PCs means fewer chips. Click for more. And as BusinessWeek says, Intel is still dependent on microprocessors. Whereas specialty parts makers for networking and communications gear will be the big winners. Click for more. Strike Two: Competition AMD kept pressure on Intel, matching chip speed at every turn. AMD releases its 1.2 GHz Athlon this month, and says it will ship faster Athlons roughly every five to six weeks. Click for more. And unlike Intel, AMD beat analysts' expectations again this quarter, earning 64 cents a shares, something that was unheard of just a few years ago. Click for more. Upstart Transmeta is poised to make a big debut in the notebook and mobile devices space. Sony, IBM and Hitachi have all partnered with the startup to create notebooks and Web pads using Transmeta technology. And Transmeta's upcoming IPO will bolster its coffers. Click for more. Strike Three: Product Problems Increased competition has forced Intel to rush products to market, and it shows. Intel delayed the launch of its Pentium 4 because of a Rambus chip set glitch. Click for more. It recalled its 1.13 GHz Pentium III after a glitch caused certain programs to freeze. Click for more. Intel then announced it won't ship the fixed versions of the chip until next year. Click for more. The company miscalculated demand for high-end Pentium III chips when it switched to a .18 micron process, causing a shortage. Click for more. And Intel killed its problem-filled, low-end Timna processor. Click for more. "SAY IT AIN'T SO" Despite the strikes, Intel isn't out. Far from it. Its factories are operating at near 100% capacity. And the Semiconductor Industry Association says industry revenues will grow 25% to $244 billion. Click for more. And Intel is the number one worldwide semiconductor vendor by revenue, according to the Gartner Group. Click for more. Just don't look for Intel to have a championship season next year either. A year of steady growth for Intel translates into a disappointing year for investors. Like all champions, Intel is just in the throes of an off year. But like any hall-of-famer, they'll have to adjust to a changing game filled with eager young players in order to stay on top. Do you think Intel's off its game? Hit the Talk Back button and give me your play-by-play. Or jump to my Berst Alert Forum, where a discussion is already under way. zdnet.com