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

To: Qtrlytrades who wrote (39045)	11/5/1997 11:08:00 PM
From: Paul Fiondella	Respond to of 186894

Its a question of competing business models Intel seeks to maximize profit by defining and selling at the high end system, and it uses its monopoly power to try to control pricing to protect margins. This worked when it had a Pentium and no one else could keep up with the CPU evolution. (Most investors here appear to not recognize that this Pentium dominance was the source of their Intel stock profits.) AMD and Cyrix are using a different model with some apparent success. They seek to undercut Intel's price and produce for the low end where Intel doesn't want to compete because of margins. As with Borland and software, once the customer sees a powerful system at a low price, he ain't ever going back to paying an Intel tariff.