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

To: John Hull who wrote (142951)	9/6/2001 1:22:54 PM
From: THE WATSONYOUTH	Read Replies (3) \| Respond to of 186894

fundamental assumption error here is that pricing on premium server CPUs has anything to do with cost of production. I agree. They have little to do with cost. My point in all of this is that the assumption that somehow standard high volume Itanium systems have to be far cheaper than correspondingly featured Power4 systems is FALSE. If Intel continues to charge OEMs high prices for Itanium processors, IBM (if it chooses to price accordingly and accept lower margins) will have a distinct advantage. This should be their plan since they can make their money on software and services. I see even the high end boxes as commodities. It would appear that SUN will get killed in such a scenario. They critically depend on hardware margins alone. THE WATSONYOUTH

To: John Hull who wrote (142951)	9/6/2001 1:33:07 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 186894

HP to Use Intel Chips in Jornada Handheld NEW YORK (Reuters) - Hewlett-Packard Co. (NYSE:HWP - news) will use Intel Corp.'s (Nasdaq:INTC - news) low-power StrongARM processor and StrataFlash memory in its new line of Jornada handheld computers, the companies said on Thursday. In addition, HP and Intel said they will work together to bring voice and wireless communication applications to future handheld devices. The tie-up comes a few days after HP said it would acquire Compaq Computer Corp. (NYSE:CPQ - news) in a deal originally valued at $25 billion. Both companies have been strong supporters of Intel, basing their product lines on chips from the company. Earlier Thursday, HP said it had begun shipping two lines of color handheld computers, which it said were the first to use the new Pocket PC 2002 Premium Edition software from Microsoft Corp. (Nasdaq:MSFT - news). Analysts have speculated that the new Hewlett-Packard would drop one of its two major lines of handheld computers, either its own Jornada or Compaq's iPAQ. The iPAQ has about 10 times the market share of the Jornada.