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

To: rkral who wrote (173557)	3/14/2003 3:37:42 PM
From: brushwud	Respond to of 186894

re "Memory is the most price-elastic commodity in the history of the world." I'm also of the opinion that memory is price-elastic, but I was looking for evidence. That's why I asked Joey "how do you know", as opposed to "why do you think" .... Consider Intel's experience in the first half of Q1 a data point. Actually, after that posting last night, it occurred to me that well, maybe memory isn't elastic in the short run (several weeks), but it certainly is in the long run (one year). I had to laugh at Joe Osha's comments last week about Intel's flash business. He considers that they have a "strategy" of "aggressive" pricing in that market. What an Alice-in-Wonderland view. Generally, lowering prices to compete is what's called "aggressive". Here's what I said about Intel's price increase last year: Message 18278140 Message 18318075 Now I'm thinking that Intel's flash business is in a downward spiral: the more they raise prices, the less their revenues will be, so they'll continue to lose money, and the FTC will continue to press them to compete fairly and break even. In eighteen months, they may no longer be a factor. If the trend continues, Intel may find itself penned in on the x86 reservation, with no way to get out.