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

To: ild who wrote (138794)	7/7/2001 7:47:09 PM
From: Dan3	Respond to of 186894

Re: My impression is that so far businesses are buying PIIIs only. With P4 desktops now less than $1k, I'm sure Intel is making progress in the corporate market with P4 - it clearly isn't going nearly as quickly, or in quite the way they'd hoped, though. It's interesting that Intel is now charging more for PIII 1GHZ than P4 1.4GHZ. Clearly they are trying to segment the market - making businesses buy expensive PIIIs while consumers get cheap P4s (instead of Athlons). The trouble with that strategy is that it's something of a dead end - when they move to P4, their business users end up switching to a cheaper chip. There has been a lot of speculation that Intel is about to announce the end of the PIII for desktops. What if the opposite is about to occur? A whole new range of Tualatin product announcements for the desktop could keep PIII alive for many more quarters and would save Intel the expense of rebuilding two FABs (since PIII is so much smaller than P4). Reducing by 2 the number of FABs they'll need would save them $6 Billion dollars over the next 18 months, and, given the way the market looks for the next year or two, that might not be a bad idea. Must not be the case, though, since every rumor is otherwise. Dan