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

To: vip who wrote (39274)	11/6/1997 10:20:00 PM
From: Jeff Fox	Read Replies (1) \| Respond to of 186894

vip, re: Intel now Thanks for the article reference. In there Andy reinterated key points of last Wedesday's conference call. I expect he and others at Intel will keep at until the analyist suddenly "discover" that Intel is strategically right and doing consistently right actions. The key is market elasticity, meaning continuing unit growth as Intel drives down the cost per mip of PC computing. As long as this continues Intel will be healthy. In the SJ Mercury article, "The PC industry has been growing at rates of 15 to 20 percent during the past few years and Grove said he saw no slowdown ahead". As the market size grows, it will continue to segment as distingishable pieces become large enough to be served with separate solutions. Andy said in the conference call that Intel recognizes seven segments and has separate product groups addressing each This is big news to me. No other silicon company has resources to tackle more than one or two of these segments. The analyist see the growing "sub-$1K" segment and panic, assuming this is product taken from higher unit value markets. Is it? Keep an eye on unit volume for each segment. If the unit volume for all segments continue to grow then Intel will continue to prosper. This is their strategy, executed by continuously introducing more advanced product and making room for these by continuously lowering the price of existing product. The next move is for PII-233 to become the new "sweet spot" while the PII-4xx are placed at the top of the line to drive deeper into the volume server market segment. Meanwhile Intel is selling very high volumes of P/MMX 200 and 233 processors. Lastly Andy promotes capabilities that are required to sustain the PC growth curve. Now this is networks. The Internet performance is abysmal and intranets are still too complex and expensive for many businesses. Intel is therefore increasing its attention to network products and initiatives. Intel realizes that with communications the demand curve is reversed, meaning that there is greater need as the number of connected nodes increase. Jeff