Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: THE WATSONYOUTH who wrote (142431)	8/30/2001 3:07:04 AM
From: BelowTheCrowd	Respond to of 186894

No, I don't dispute those numbers, but the PIII is NOT the top end, certainly not according to Intel, Dell or any other boxmakers. Hell, Dell isn't even selling business PCs BELOW the PIII/1.1GHz level. (Notebooks are still available down to 750.) The big difference I see, again, is that while people used to specify a mix that was mostly mid-range with some high-end processors for specific purposes, these days I see people who are specifying at or close to the bottom. Those are the lowest margin product for Intel. You can't convince me I need to spend so much as $50 extra to have a P4 or a faster processor, and I believe that mine is a typical view. That is why, to me (as an investor) the most significant thing that came out of IDF was the new price structure. Only $562 for the latest and greatest. $256 for the 1.8, $163 for the 1.6. Those are unprecedented low prices for a newly introduced product and an an unprecedented pace of price cuts for relatively new and powerful previous chips. What I see, in a nutshell is: * Lower volume growth at all levels, but especially at the top end. * Lower prices from day one. * More aggressive price cuts, sooner after introduction than was historically the case. All of which translates into a lot less revenue and lower margins over the life of each product. That's already hitting the bottom line and my guess is it will continue to do so. Intel may very well be able to use its pricing clout to again push AMD to the sidelines. But even if AMD were elimintated completely (and I don't think Intel is stupid enough to do that, they prefer to be able to tell the Justice Department about all the competition), Intel would still have trouble convincing many people to upgrade so long as the state of software remains where it is. mg

To: THE WATSONYOUTH who wrote (142431)	8/30/2001 6:17:55 PM
From: Ali Chen	Respond to of 186894

TWY, "Our resident thread expert claims that Intel sold 13+ million 1GHz PIIIs (over half the total unit volume) last quarter and most of them went to corporate accounts. Are you saying that this is just B.S.??" Looks like it is, simply from manufacturing standpoint. If you look at "Intel Pentium III Processor Specification Update", Aug.2001-(ver. 033), ftp://download.intel.com/design/PentiumIII/specupdt/24445333.pdf , you may find that the volume stepping cD0, CPUID=68A, still starts from 600MHzbin, and ends at 1.13. It must be a very special break of physics laws if the peak of the bin distribution is shifted so much to 1GHz edge. - Ali