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

To: Monica Detwiler who wrote (40459)	11/16/1997 12:31:00 AM
From: TFF	Respond to of 186894

Monica: From a daytraders perspective I see the INTC article on News.com as BIG negative for the stock over the next few days. Sure maybe it's bull, but that will not stop the traders from taking INTC lower. If you hold INTC for the long term it probably means nothing. Cheers!

To: Monica Detwiler who wrote (40459)	11/16/1997 8:41:00 AM
From: gnuman	Read Replies (3) \| Respond to of 186894

Monica, IMO it's precisely the 75% non-PII systems that are creating the glut of PII's. For example, if the average consumer believes a P233MMX is more than adequate for his needs, why pay another $300 for the PII designator? Even worse, many don't see the need for even that much power. Look at todays Compaq ad's in the Sunday paper. Prices, (not including monitor), range from $799 for the Presario 2200, (180 MHz MediaGX), to the $2499 Presario 4850, (PII-300mHz). The Presario 4508 with P200MMX is a steal at $1199! The key question is who is the holiday consumer, and what will they pay for a PC? Let's compare the 4508 with a Presario 4824, (PII233). If you add a 17" monitor the Presario 4508 prices out at $1898 vs $2498 for the 4824. That's a $600 premium. In the average consumers mind that may not make sense. There are a number of studies that indicate the low end of the market is growing significantly faster then the mid to high end. Not surprising. Many of these people are buying their first PC, and many of these are in the lower income brackets. The 40% who have a PC are good candidates to upgrade to PII, but they still represent the minority of purchases. The internet is a driving factor to much of the new ownership, but cheap systems are more than adequate for this segment. There are many industry analysts who are singing the same tune. (By the way, I'm long Intel and these are just my opinions). But I think the market has changed dramatically for Intel, (and the PC makers), and I also think the days of 50% margins are in real jeopardy.