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

To: Barry A. Watzman who wrote (38469)	10/31/1997 12:35:00 AM
From: Joe NYC	Respond to of 186894

Barry, I wonder if the PII will ever fall to below $200, given its built-in cache memory. It's assembly costs are high, much higher than a simple silicon chip such as socket 7 in a ceramic or plastic package. I guess the assumption at Intel was that they will be able to pass the cost to customers. That the prices of P-II would be so high that it would not matter. But some other department, (I guess the monopoly department) decided that prices have to be cut to drive AMD out of business. And beyond that, I'm not sure that it will ever have to be that low, I don't see any effective competition on the horizon. AMD will eventually get it right. Suppose they get it right in Q2 98. AMD is talking to Compaq about selling K6-233 for $80. Intel can of course choose not to compete on this level, but more likely, price of first P55c-233 and later P-II 233 will be cut to below $150 to be able to compete in this sub-$1,000 market. Then later, there will be MediaGX follow up called MXi selling P-II performance + graphics, audio and DVD for about $100. Joe

To: Barry A. Watzman who wrote (38469)	10/31/1997 12:32:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

Barry, re: "I wonder if the PII will ever fall to below $200, given its built-in cache memory." Correct me if I'm wrong, but it sounds like you're thinking that PII has L2 cache built into the processor package, a' la Pentium Pro. PII is not like PPro in that respect. L2 is on the slot 1 cartridge and is SRAM provided by companies like IDT. Of course, PII does have L1 cache built in, and it's on the same silicon slab as the CPU. Therefore, given successful conversion to 0.25 micron with good yields (what other kind does Intel do) PII could become a low priced chip like the other Pentiums have become. Tony