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

To: fat boy who wrote (38392)	10/30/1997 10:40:00 AM
From: Darin	Read Replies (5) \| Respond to of 186894

To All: INTC Q4 1998 vs Q4 1997 prices The full new INTC pricing schedule can be found at: lehman.com Although many analysts have suggested that these are huge price cuts, some interesting inferences can be drawn if we compare this year's price schedule with last years. Ie look at Q4 97 vs Q4 98. I suggest the following... break down the price schdule into three groups of potential buyers: budget Desktop (lowest 3), high-end Desktop (top 3), highend laptop (top 2) and budget laptop. I form the following categories: For 1998 Budget Desktop: 166MMX, 200MMX, 233MMX: ASP $208 1997 Budget Desktop: P120, P133, P150 ASP $205 1998 Highend Desktop: PII300, PII266, PII233: ASP $556 1997 Highend Desktop: PPro200, PPro180, P200: ASP $487 1998 Budget laptop: 166MMX: ASP $112 1997 Budget laptop: P120: ASP $134 1998 Highend Laptop: 233MMX, 200MMX (.25) ASP $514 1997 Highend Laptop: P166, P150 ASP $340 Remember that last christmas there were NO MMX chips in the channel. So, what do we find??? in every category except the budget laptop, the 1998 ASP is HIGHER then in the same quarter for 1997!!! Then, contemplate the following. The PPRo was notorious for its high manufacturing cost and low yields... INTC has stated that they are getting very good yields from their PII line.. Margins on the highend are probably higher. The Tillamook are manufacturered at .25 vs last year's high end laptops made at .35.... higher margins on those too! One Caveat: This analysis excludes (as does the Lehman price schedule, the pricing on the following chips for 1998. The P133-P200 Non MMX, whose ASP is now $86.50. Can anyone here verify that these chips are no longer in production for Q4 1998. My conclusion: INTC could be setting up for a nice Q4. Remember that last year, Q4 was dampened by the fact that savvy consumers put off purchasing new computers since MMX was not ready. This year, the PII and Tillamook will be fully in the stores and ready to go. Comments, suggestions, insults??? Darin