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To: Road Walker who wrote (136050)	5/25/2001 2:54:14 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

John, RE: I hope they are talking about profit, not just revenue. If they follow the GE model, they're talking about revenue. And when you're talking about the communications segment, it would be difficult, if not impossible, to measure the profits of competitors.

To: Road Walker who wrote (136050)	5/25/2001 3:28:57 PM
From: Tushar Patel	Respond to of 186894

Acutally what Andy Bryant said was that ".... what we said last year was that even though the other showed a big negative, our networking silicon business which was in there was running at a profit, we said that our wireless communication business which was in there was running at a profit and certainly a couple of businesses were losing money". After a couple of intervening sentences, he then said "... we've been profitable in the networking business for silicon and wireless business for silicon". This could mean that the networking SYSTEMS business which makes the large amounts of network devices is not yet profitable even though parts of relevant divisions that produce chips are profitable. tushar

To: Road Walker who wrote (136050)	5/25/2001 3:30:10 PM
From: Saturn V	Read Replies (1) \| Respond to of 186894

Ref <Note that Bryant said the "Networking Division and the Mobile Communications division". Does that include the non-mobile communications businesses, where Intel has made the majority of it's investments? Mobile communications, at this point, is primarily flash > Mobile includes all the chips for next generation cellular and some of Intel's new architecture platforms. The new Communication Group was formed by combining the old Networking Division( which included a lot of non-mobile communications), and the Mobile Communications Group. I look forward to some pruning in the new Communication Group within a year, in line with Barret's statements. The uncertainty and the confusion in the communication space which I discussed earlier, plays to Intel's advantage. If the technology and the business were well defined, it would be impossible to unseat the existing incumbents in this space like Lucent, Motorola, NT etc. The old line telecommunication companies have excellent technology, but are used to the stability and the predictability of the old world of communication. This unsettling era has them confused and unsure of which way to proceed! This is an ideal situation for new startups or a new predator like Intel, which has been hardened and toughened by the the brutal and incessant competition of the chip and microprocessor business ! However Intel is less focused than before. A few years ago Intel had only one or two computing architectures. Now it is pursuing four. Plus the uncertainty of the new communication business and the headaches of absorbing the new acquisitions. The poorer focus has lead to worse execution in the bread and butter x86 space. However the damage is not permanent , and is minor. AMD was on the ropes struggling to survive two years ago. Now it has been reinvigorated by a few Intel missteps. However I believe that it has peaked out. I agree that the communication foray is a gamble. However Intel is one of the few companies which can afford to take the gamble, and have a reasonable chance of success.

To: Road Walker who wrote (136050)	5/26/2001 12:22:40 AM
From: Amy J	Read Replies (1) \| Respond to of 186894

Hi John, RE: "Services to create a loss of $1B on $1.5B in sales" Someone had posted that the Data Centers cost (I think it said) $1B/each. I think it said Intel was planning on building 7, and if so, that could be $7B. That's a lot of money, especially since Exodus had reported a doubling of their losses I seem to recall. But didn't Intel say they are slowing their involvement in that area down? I wonder how many have been built already? Regards, Amy J