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

To: Sarmad Y. Hermiz who wrote (183659)	3/5/2006 10:31:39 AM
From: smooth2o	Read Replies (1) \| Respond to of 186894

I think it is total non-sense for anyone to claim that AMD is winning business on some technology merit. They're just selling chips cheap. $50 per unit cheaper than Intel. And consumers are right in preferring the lower price chips. They work just as well. ****** That might be for desktop where $ing is $100 difference, but notebooks are about $320 without 64 bits, so that's a lot. I would question what profit AMD will make at those levels. See HP. Then the next question is: can Intel make its desired profit on the combined processor and chipset, even when lowering the price to the level of a combined AMD processor and 3rd party chip-set ? ******* I don't think there's any problems with costs. The problem is all the marketing and other activities they do that AMD doesn't. AMD is simply the low cost leader. The industry will miss a lot of Intel innovation if they have to cut a lot fo these activities. AMD ultimately benefits from Centrino. If AMD is just a low cost supplier, someday they have to evangelize the market, Intel can't do it for them forever. Step up to the pump instead of a free ride. Intel could cut a lot of costs by stepping back. I think that answer is a definite yes. For one thing, Intel keeps the markup on the chip-set, to offset the discount on the processor. And second, the fabs that make chipsets are old and obsolete (for processors) and fully depreciated. ** Not. I think some of these chips are now made in non-dep fabs. This is all very simple. I'm not surprised that none of the AMD-crazed analysts mention this. I think they still have left-over AMD shares to distribute. But when the fall comes, it will be a tumble. Mean-while Intel will still be in the woods for a few months. **** That's generous, it may be years. AMD's fall will be very hard. Right now, the price supports $2 a share and they have a lot of jeopardy with debt, depreciation and building a new 45nm fab to compete. Smooth Smooth