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

To: Andrew Shih who wrote (114500)	10/19/2000 1:31:24 AM
From: Jim McMannis	Respond to of 186894

RE:"If a 1.4Ghz P4 costs $580 after the rebate, how much cheaper does the P3 1 Ghz get? Wasn't the next price drop down to $450 or so?" Forget about it...What Intel will likely do is sell the P4 to Dell (& other friendly OEMS) at a price where they can sell out their limited production. Street prices won't mean a lot. In the meantime they will be working feverishly to dump Rambus, save some face with their partners and then really ramp up when other chipsets are available. That's what I would do... Jim

To: Andrew Shih who wrote (114500)	10/19/2000 1:32:29 AM
From: Cirruslvr	Respond to of 186894

Andrew - RE: "If a 1.4Ghz P4 costs $580 after the rebate, how much cheaper does the P3 1 Ghz get? Wasn't the next price drop down to $450 or so?" Something like that. "If Intel has spare capacity, replacing 2 P3s with a P4 isn't a really bad way to go. Instead of flooding the market, they get a very good margin and use up all their capacity." I think the way Intel will be able to maintain gross margins while still making as many large P4s as they can is because of the smaller C0 stepping for PIII/Celeron. It is 15% smaller than the B0 stepping which means a higher number of good chips per wafer and therefore lower cost per processor. Since the PIII/Celeron is the main money maker for Intel this cost saving will be big once B0 ramps down and C0 fully ramps up. Paul, does this explanation make sense?