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

To: Bill Jackson who wrote (167826)	7/9/2002 6:45:22 PM
From: NITT	Read Replies (1) \| Respond to of 186894

re: "You think Intel would not try to reclaim the prior years price structures?" I know they will try, but the market will not let them do it. The is not a 150M unit demand for $1000 CPUs... there might be that large a demand for an ASP of $225 (which would include CPUs ranging from about $75 all the way up to $1000). So lets assume Intel can get another $50 per CPU X 120M units in a year... that's that's $6B to the bottom line. Now assume they can pick up 10M of the unit that AMD currently ship and say it will only give you $175 per unit... that's another $1.75B in revenue... much falls to the bottom line since the big cost's are fixed. Build in 10% market growth over time on top of that... larger if Intel can get system costs down... may require lower ASP, but you balance it against overall revenue and profit. Now assume Itanium actually gets traction in the high end... a new revenue and profit stream.. There is also the possibility that Intel will be one of the last men standing in comm silicon arena when that segment gets off the bottom. Is it a $10B business for Intel on it's own? I don't know, but lots of analysts seem to point at it for it's potential. I'm not saying this happens overnight... there are risks to all of this. Nitt