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

To: Barry Grossman who wrote (40307)	11/13/1997 8:40:00 PM
From: William Hunt	Read Replies (1) \| Respond to of 186894

TO ALL-------Dow Jones Newswires -- November 13, 1997 Analyst: Intel Accelerating Pentium II Price Cuts By Christopher Grimes NEW YORK (Dow Jones)--Intel Corp. (INTC) is said to be enacting further prices cuts on its Pentium II chips in order to speed up the market's acceptance of them. Drew Peck, an analyst at Cowen & Co., said Intel is offering discounts to selected customers that go beyond the price cuts that went into effect Nov. 1. As an example, Peck said Intel is selling the 233-megahertz Pentium II chip for $250 to $300 to some of its customers. Those chips were reported to cost $401 at the beginning of November. Intel didn't immediately return phone calls for comment. As part of its regular regimen of cutting prices three a year, Intel cut chip prices by 13% to 40% on Nov. 1, with most of the cuts at about 20%. In August, the company reduced prices by 30% to 50%. In a note Thursday, Lehman Brothers Inc. analyst Michael Gumport wrote that he had heard from clients that Intel was planning to cut prices in December. He wrote that if this is true, it would be "a very unusual move." Gumport wasn't available for comment. Peck said he had heard the cuts would begin in January. But he said if Intel is offering reduced prices to some companies, it may not choose to formally aanounce price cuts later on. "The issue of a formal price cut becomes academic," he said. He said aggressive price cuts are a good strategy for Intel in the long-term, although there could be short-term problems with gross margins. "It makes good sense to be doing that," Peck said. "Intel's highest priority is to move users to the Pentium II as quickly as possible, and if they can't do that based on technical merit alone, then they'll do it through pricing." Intel spokesman Tom Waldrop said the company doesn't comment on future pricing moves. But he did say the company tends to have some price moves each quarter. Those moves, he said, are revealed only to Intel's customers. BEST WISHES BILL