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

To: jackrabbit who wrote (138980)	7/10/2001 11:54:44 AM
From: Dan3	Respond to of 186894

Re: GM cold be lower than 49% and still within the guidance. But units are probably better than some people seem to be expecting. AMD was almost gone from retail for the month of May - whether they were displaced by an Intel dump of inventory or simply sold out because customers wanted AMD PCs doesn't matter. And if AMD had record units in a quarter when they were absent from a good part of their primary market for a third of the period, then its hard to see them gaining market share on Intel in the same period. But that may not be all good news. If this was a high unit quarter (and the price war pricing offered by both companies may have led to one) then things may not be getting much better for Q3 or even Q4 - we could be seeing "as good as it gets" as buyers decide they don't need expensive PCs anymore - if cheap ones can do just as well. Intel didn't help things here when both benchmarks and prices asked made it clear that a 1GHZ PIII was better than a 1.3GHZ P4 - since buyers can't tell what makes one PC better than another, they seem to have just decided to buy whatever is cheap. The question is: how can PC units be up when the components that go into them are down? Compared with June 2000, TSMC's sales last month fell 29.1% while UMC's slumped 52.0%. The fall was bigger at UMC partly because it was forced to cut prices more deeply than TSMC did, some analysts said. Last week, UMC chairman Robert Tsao warned the IC industry could be at “the worst downturn in the last 30 years.” ebnews.com So there are a lot of contradictory signals coming in - it will be interesting to see what Intel reports.