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

To: EL KABONG!!! who wrote (113870)	10/17/2000 9:10:21 AM
From: Dan3	Read Replies (1) \| Respond to of 186894

That Wall Street Journal Article isn't very good. What about the notion of mhz elasticity of demand to go along with price elasticity of demand? The theory is that PC demand, particularly replacement demand, will accelerate or decelerate its growth rate according to the mhz differential between currently available systems and the installed base. As a micro level example, a consumer with a 300mhz system wouldn't purchase an 800mhz system offered at median price but would purchase an 1100mhz system offered at median price. If mhz elasticity of demand exists, then there will be a significant increase in demand for PCs at any given price point due to the exceptional increase in mhz availability this quarter. Intel might not do as badly as expected by the WSJ (though not as well as AMD) and Microsoft would be a big winner. Any thoughts?