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

To: Road Walker who wrote (134744)	5/12/2001 1:05:03 AM
From: Dan3	Read Replies (2) \| Respond to of 186894

Re: You don't get it. Intel's microprocessor business is as profitable as it has ever been Somebody doesn't get it.... Intel unit sales are flat, unit costs are up (P4), and unit revenue is down drastically. That is not as profitable as it has ever been, not even close. Next quarter, Intel's mobile and SMP parts have to at least approach AMD pricing or Intel continues to hemorrhage market share. For AMD it's a candy store of high ASP markets to start selling into. Platform costs for P4 (requiring dual channel motherboards and RDRAM) are about $100 higher than the AMD equivalent. Take, for example, the new SiS 735 chipset that offers spectacular DDR performance and is an extremely inexpensive single chip high performance solution. Other solutions from ALi, VIA, and, of course, AMD are available. Special feature DDR chipsets from Nvidia and Micron are being sampled. P4 is still stuck with one chipset, and that's an expensive chipset that demands dual channel 6-layer motherboards, and provides mediocre performance in return. The closer you look, the worse it gets for Intel. It's reminiscent of when IBM destroyed their position in the PC market by riding Microchannel down the sewer. Maybe Intel can someday recover from the drubbing they've delivered to themselves, but it's going to be years if ever. The ongoing wreck of the whole Rambus strategy just gets worse and worse. P4 is intimately linked to a company that designed high cost, low performing memory and has now been convicted of fraud. Is P4's performance a fraud? Its memory design certainly is - proven in a court of law. Now Intel gets to play catch up to AMD's DDR platform. It will be scrambling this fall to rush out immature platforms that will have to compete with the AMD platform's mature second generation DDR chipsets. Exactly the reverse of the competitive position Intel expected its Rambus strategy to put it in. Dan