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To: Pravin Kamdar who wrote (37733)	4/28/2001 6:29:24 PM
From: combjelly	Respond to of 275872

" I wouldn't be surprised if they have made some unit number guarantees with Samsung, and their price slashing may be to make sure they hit those numbers. If they don't, and this is just speculation, they may have to pay Samsung for their RDRAM inventory." This makes a lot of sense. Have to be careful about those deals that are made with the Devil...

To: Pravin Kamdar who wrote (37733)	4/28/2001 6:41:58 PM
From: Win Smith	Respond to of 275872

Pravin, on the subject of Intel and its RDRAM inventory, there was this bit from Mike Magee recently: Because a systems integrator is forced to buy the boxed product with the RIMMs bundled, his or her firm is much worse off. For example, the IPD boxed sets, with the RAM taken out, are worth: BX80528JK130GR (P4-1.3+128MB) $413 - $100 = $313; BX80528JK170GR (P4-1.4+128MB) $490-$100 = $390; BX80528JK170GR (P4-1.7+128MB) $472 - $100 = $372; BX80528JK150GR2 (P4-1.5+256MB) $770 - $200 = $570; BX80528JK170GR2 (P4-1.7+256MB) $955-$200 = $755. Further, said he and other integrators we talked to in our investigation, you can buy CPUs "leaking" from large PC manufacturers and being sold into the retail market. One cited a Pentium 4 1.3GHz on Pricewatch being sold for between $218 and $250, a 1.5GHz for between $397 and " None of this makes any sense," said a dealer. "I can buy through my authorised channels or through the retail grey market and here's how it stacks up: "A 1.3GHz P4 costs $315 boxed and $225 in the grey market, a 1.4GHz $395 boxed and $300 in the grey market; a 1.5GHz $570 from IPD and $425 in the grey market, and a 1.7GHz $375 from IPD and $550 in the grey market," he claimed.http://213.219.40.69/27040101.htm All a bit confusing, Intel may already have problems with their Rambus inventory though.

To: Pravin Kamdar who wrote (37733)	4/28/2001 8:52:30 PM
From: kapkan4u	Read Replies (1) \| Respond to of 275872

<If they don't, and this is just speculation, they may have to pay Samsung for their RDRAM inventory. > I am almost certain that Intel committed to buy X Mbytes of RDRAM from Samsung at Y prices. Now they are scrambling to sell enough P4 to meet these commitments. Hence the incredible price drops on P4. Also, as was reported by Mike Magee, Intel is boxing RDRAMs with P4 at higher than spot prices for RDRAM and screwing the distributors this way. Kap

To: Pravin Kamdar who wrote (37733)	4/28/2001 9:22:20 PM
From: John Stopforth	Read Replies (1) \| Respond to of 275872

Pravin Last week we heard of lay-offs at Unilever (7000), Siemens in Germany (3000) and TD Waterhouse reducing their staff by 18%. At the same time Intel says everything is OK with no staff cuts and no cuts in capital spending. It seems to me Intel is taking a gamble again. According to their last quarterly statement their cash on hand was reduced to 10 billion from 13 billion. I think it is not unreasonable to predict their cash will be reduced another 3 to 4 billion dollars in this quarter. They are gambling that the economy will recover and back to school purchases will be strong. Now what if the mobile palomino is a real hit, Intel might have miscalculated. They have in the recent past. If revenues are still down in the third quarter they will be scrambling to reduce costs, like reducing capital outlays drastically. John, still long and strong