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

To: NITT who wrote (168165)	7/14/2002 2:31:42 AM
From: Amy J	Read Replies (1) \| Respond to of 186894

Hi NITT, RE: "I was talking about" I know. I changed the topic to biz model, unrelated to your post, Microsoft loves horizontal volume and so does Intel, but Intel also needs vertical margins, in addition to Intel's horizontal volume. Intel needs to work faster on improving margins. RE: "I'm hoping that both volume and ASP start heading up again." I think costs have to decrease. RE: "I would expect Intel to look at cost (can you say headcount) as a near term fix." I agree. I think Intel should take a serious look at making cuts. Barrett's spending doesn't quite seem consistent with the hard times, relative to the cuts other large companies have made. Intel should completely eliminate all bonuses this year - many other large firms have eliminated bonuses. Microsoft eliminated the geographical pay difference in Bay Area per SJMN. Intel should definitely eliminate any geographical difference it may have immediately - Bay Area rents have come down by 10%. Sad to say, but Intel should probably cut a few thousand people too. Until the engineers are able to improve margins by reducing costs or until Intel has established itself in a market with adequate margins, Intel should be very careful with expenses. Privately held companies in many different sectors are saying Q2 was really bad for them. I think Intel needs to cut expenses. Regards, Amy J