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

To: Jim McMannis who wrote (136626)	6/4/2001 6:51:23 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Jim, re: True but apparently company A is not going to wait around and let this happen. They are slashing prices as a pre-emptive strike against losing market share. They are lowering some (not slashing) prices to stimulate demand in a weak market. Typical of Intel in the past. re: Do you ever remember them selling there flagship chip for <$300? No, but the prices for the high end have trended down over the years. Again, weak sell-through is influencing Intel. As an Intel investor (you still are?), would you have them keep prices high, keep the chip out of the mainstream, when they have the capacity to produce more P4's? MHO, Intel is being very aggressive, but that's in reaction to a soft IT economy, not to AMD. John

To: Jim McMannis who wrote (136626)	6/5/2001 3:04:57 AM
From: Paul Engel	Respond to of 186894

McPanic - Re: "They are slashing prices as a pre-emptive strike against losing market share." Intel did the EXACT SAME THING during the Pentium - Pentium II transition in 1997 - and every analyst predicted Intel was 24 hours away from going bankrupt. Here is one analyst's comments (from Lehman). Please note - Intel is still around - but the analyst seems to have long ago disappeared. Lehman Brothers (M. A. Gumport, CFA/C.Gangi 1(212)5) LARGER PRICE CUTS COMING. Reports have circulated for several weeks that Intel would take larger November 1 price cuts. Yesterday's Computer Retail Week suggested price cuts 10% steeper than previous plans on P2 (Pentium 2) and P55C (Pentium MMX), plus steep cuts on low voltage P55Cs (no real surprise; reflects Tillamook P5x intro). Our summary of new anticipated pricing is attached. GOOD NEWS LONGER TERM: FASTER TRANSITION. The pricing report also indicates Intel intends moving the market to "nearly 40% P2 by 4Q97". We suspect the goal (originally 50% P2 by March-April 1998) is now 35%-40% by December 31, 1997. That fast move is good news and will distance Intel from the competition. We have no doubts regarding market elasticity. Also, aggressive pricing likely reflects manufacturing success (a contrast to others) as much as competition. CAUTION SHORT TERM: BOW WAVE. Short term, we are concerned that more aggressive pricing and rapid technology advancement will disrupt orderly EPS progress. For instance, we are surprised at the slow rollout of Tillamook and the cautious, premium positioning taken by all pc market leaders. We believe there remains a large inventory of existing product to be cleared. TILLAMOOK UPTAKE. Intel shipped this low voltage, 200/233 MHz part in June, 60% faster at the same wattage. This product has all the makings to dramatically reinvigorate the notebook sector.