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

To: Elmer who wrote (140068)	7/25/2001 10:46:35 AM
From: Dan3	Read Replies (3) \| Respond to of 186894

Re: I am short August $30s. I am not worried about being called away Given that Intel appears to have responded to AMD's challenge to its server business by shooting it's own profitable business in the head, I'd say you're safe. The Xeon line for workstations and servers used to sell for $800 to $2,000+. With an ASP probably around $1,200. New pricing indicates Xeon ASPs around $300 - a drop of 75%, and all of that profit. If they sell 1.5 million of these a quarter, their quarterly profits will take a hit of $1.35 Billion from this pricing change. With desktop ASPs down, mobile ASPs dropping fast as AMD enters that market, and server ASPS collapsing due to Intel's pre-emptive strike, where can this company get the $6 Billion it needs each quarter to cover its costs? CPU Core Frequency 15 July 26 August 28 October Xeon Foster 2.0 $615 $444 1.7 $406 $256 - 1.5 $309 $192 - 1.4 $268 $192 - intelzone.com