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

To: milan0 who wrote (38539)	10/31/1997 4:14:00 PM
From: Joey Smith	Read Replies (1) \| Respond to of 186894

Just posted on CPQ thread: Compaq Computer Corp. (CPQ) 64 +2 3/4: CEO at PC maker says that 4Q sales are on target and that Asia problems has no significant impact on its sales.....Now, all we need is Intel to come out with a statement like this soon <GGG> One concern for next week is potential Iraqi situation. Have a good weekend all. joey

To: milan0 who wrote (38539)	10/31/1997 8:04:00 PM
From: Paul Engel	Read Replies (3) \| Respond to of 186894

Langlois - Re: "Even if Intel sells faster P2 chips in 3Q 98, how could they have an ASP of 400$ while selling the whole computer for less than $1000? It has been reported that Intel will drop the Pentium II/233 MHz to $294 by early next year: techweb.com "By February 1998, Intel is expected to further drop the price of the Pentium II 233MHz to roughly $294, while the Pentium 233MHz with MMX technology will see a modest price drop to $294, as well, industry sources said." That is a $106 drop. Let's assume it will drop another $75 by the end of the year - resulting in a $219 price. Currently, the low cost Pentium II motherbaords are $195, and let's assume they will drop to $135 by the end of next year - recall that the Pentium II/SEC contains the cache SRAM. A CPU/motherboard then costs $354. Add in a 3 Gig hard drive ($190), 32 Meg DRAM ($110), a graphics card ($100)and you have $750. Throw in a case/power supply and keyboard plus 15% profit, and I think <$1000 will be met quite easily. Remember - the memory and disk drives will also become cheaper. Now, with $219 the lowest price, the highest price and fastest Pentium would sell for $619 for a "symmetric price with an average of $400. However, the volumes will be much greater for the slower CPUs. Thus, Intel will probably have 450 MHz Deschutes devices selling for $750 to help keep the ASPs centered at or near $400. Paul