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

To: Bill Jackson who wrote (140133)	7/25/2001 10:01:23 PM
From: Dan3	Read Replies (4) \| Respond to of 186894

Re: The fall build and the laptops will make an impact. right now many parts are quite tight. Last fall Intel's only competition in mobiles was a handful of low MHZ K6-2+ SKUs from HP. This fall they face Athlon 4's up to 1.2GHZ - and have only mobile Pentium 3 to market against the Athlon 4s Intel may sell nearly as many parts, but ASPs will be much lower. Intel also appears to have concluded that AMD must be kept out of the workstation/server market no matter what the cost to Intel. I find this somewhat puzzling, since the server market is fairly conservative (though parts of the workstation market are not). The machete Intel has taken to its Xeon prices is amazing - and I don't think they needed to be so extreme. AMD wasn't going to move many units into to this small, conservative, and presently weak market regardless. But Intel went ahead and pre-emptively cut prices to a quarter of what they were last year. That should finally stop the market share losses, but Intel profits are going to get hit pretty hard. And by the time Intel has enough .13 capacity online to bring out Northwood, AMD will be bringing out its own .13 parts. If SOI is any advantage at all, Intel has a problem. If the "64 bitness" of the hammers is any where near as much of a marketing benefit as the "32 bitness" of the 386 was, AMD may even gain the high-end desktop for real. Regardless, there doesn't appear to be any respite for Intel margins any time soon.