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

To: Amy J who wrote (142845)	9/5/2001 6:16:36 PM
From: Dan3	Read Replies (1) \| Respond to of 186894

Wednesday, September 05, 2001 900 MHz PIII Xeon Shipments Resume Wednesday, September 05, 2001 — Server vendors are beginning to ship servers loaded with 900 MHz Pentium III Xeons again after a problem with the high-end processors caused Intel Corp. to temporarily interrupt the flow of the chips. Dell Computer Corp. signalled the return of the 900 MHz Pentium III Xeons in late August by publishing a Transaction Processing Performance Council (TPC) benchmark using the chips in one of its eight-processor servers. A spokeswoman for Dell said the company got a "small amount" of the processors from Intel last week and started shipping systems in limited quantities. Dell does not expect to start volume shipments of the servers until late Q3, she said. The processor does not show up as an option yet when customizing systems on Dell's Web site. IBM Corp. began filling orders for 900 MHz Pentium III systems last week, a spokesman said. Hewlett-Packard Co. expects to start shipping 900 MHz systems this month, a spokeswoman said. Intel initially launched the 900 MHz Pentium III Xeon in late March and servers based on the processor were supposed to be available by the end of June. Intel put a hold on 900 MHz shipments in mid-April when the chipmaker discovered a problem in lab stress testing that could require a system reboot. The 900 MHz Pentium III Xeon is the final step in Intel's Pentium III Xeon line for multiprocessing. Those processors are being replaced by Foster, which is expected to ship sometime in 2002. Foster, with its faster front-side bus, will not work with the Profusion eight-way chipset that the Pentium III Xeons run on. The 900 MHz processor is Intel's most expensive 32-bit processor with a list price of $3,692 in 1,000-unit quantities. -- Scott Bekker entmag.com

To: Amy J who wrote (142845)	9/5/2001 6:49:46 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Amy, re: If vendors can return goods, that means there is a potential that Intel is counting some revenue on shipped product that potentially could be returned as cancelled goods, unopened chips, by vendors? No. Intel doesn't recognize revenue from it's ditributors until it is sold by the distributor. After that, I assume it's the distributors responsibility. For the OEM's, as I understand it, they recognize the revenue when it ships to the OEM, implying that the OEM's take possesion of the goods when it leaves the Intel facility. There may be a price protection scheme in the Intel contracts to the OEM's. I know the OEM's have price protection contracts with the retailers, and that sort of stuff can flow up hill to the component manufacturers. (Price protection definition: In a category where prices decline rapidly, a manufacturer will guarantee that if the price of a particular model declines, they will make up the difference on the inventory that the customer has in inventory, at the time of the price decline. So if ABC company has 100 model X, and the price goes from $100 to $90, the supplier will send them a credit for $1000). John