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


To: Lee Penick who wrote (39539)11/7/1997 11:56:00 PM
From: pt  Respond to of 186894
 
Lee, CPQ, for example, could have been using JIT for years while
selling boxes through retail channels. It means they order CPUs from
INTC to arrive just in time to build the box to ship to the distributor,
who may have ordered it just in time to ship it to the retailer,
who puts it on the shelf. With Dell you call up, order a machine,
they say OK, it will be ready in two weeks; today we're busy
assembling machines ordered two weeks ago. Dell calls INTC says, send
me another P-II for delivery two weeks from today. So the PC you buy
today off the shelf, INTC sold the CPU, say, 6-8 weeks ago; maybe
more. The PC you buy from Dell today, INTC sells the CPU, say, 10
days after today. (Some exaggeration, but you get the picture.)

Paul T.



To: Lee Penick who wrote (39539)11/7/1997 11:57:00 PM
From: Paul Fiondella  Read Replies (1) | Respond to of 186894
 
No inventory means no stocking up on overpriced CPU's

Especially if you see you can trade the customer down to a Cyrix and keep the margin for yourself rather than passing it on to Intel.