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

To: Mary Cluney who wrote (134086)	5/3/2001 9:56:40 PM
From: Dan3	Read Replies (3) \| Respond to of 186894

Re: Chances are that Intel has run some regression analysis to determine the price points where they can move the most chips. AMD is just not a credible threat at this point. Intel establishes the prices based on market conditions and their own internal cost structure and AMD has to react, duck or get out of the way. In the most recent quarter, Intel revenues were down 25% and profits were down 80%. During the same period, competing in the same markets with similar products, AMD revenues were actually up slightly and after tax profits were down only 30%. AMD gained significant market share by taking sales away from Intel - and did it without taking much of a profit hit. That's while AMD was struggling with expensive motherboards and no mobile or SMP products. This quarter AMD finally is supported by low cost integrated motherboards and next quarter may even seen mobile and SMP products. Despite all the advantages they still held last quarter, Intel got creamed last quarter - and it's rather obviously downhill from here. Speaking of reacting and ducking, Intel has cut it's prices to about 1/3 of what they have traditionally been. Intel may keep AMD from making much money for a while, but this price war is chopping out big hunks of Intel's flesh - it will take them somewhere between years and forever to recover. AMD has gotten too big and too successful for Intel to ever again make the kind of profits it achieved in its glory days when it held a monopoly. If Intel doesn't do something radical about its cost structure, it may not make any profits at all.