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

To: Mohan Marette who wrote (37724)	10/27/1997 8:18:00 AM
From: Xpiderman	Read Replies (1) \| Respond to of 186894

Digital and Intel to settle Pentium-suit agreement expected Monday Published: Oct. 27, 1997 THE LONG-RUMORED legal settlement between Intel and Digital over chip technology that Digital claims Intel stole should be over early Monday morning. The final deal will allow Digital to receive as much as $850 million in cash from Intel. Intel will gain a new manufacturing plant and rights to the disputed technology. The companies are expected to make a joint announcement at 7 a.m. PST. sjmercury.com

To: Mohan Marette who wrote (37724)	10/27/1997 8:56:00 AM
From: mauser96	Read Replies (1) \| Respond to of 186894

Assuming that the reason for the price drop is better yield than expected as Intel states, it is good news. It costs almost as much to make a defective chip as a good one, so higher yield allows the same profit at lower prices. Lower prices stimulate demand, which means more chips sold. More chips sold mean more economies of scale, and more pressure on AMD and others which have to lower prices also (they are already losing money at present prices and are unable to increase capacity because of lack of fab space and defective manufacturing abilities). It indicates that Intel's superior manufacturing skills are intact.