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

To: robert w fain who wrote (41145)	11/29/1997 9:36:00 AM
From: Paul Fiondella	Respond to of 186894

"the reality is Intel will compete on price" When I see a 166MHz Intel Pentium system being sold at the same $999 price as a AMD K6-233MHZ ( a no brainer choice ), I have to wonder about whether they have already answered your question. AMD is driving the scenario by pushing prices down well before Intel's business model anticipated. Looks like everything up to Slot II is obsolete by the end of the first calendar quarter next year.

To: robert w fain who wrote (41145)	11/29/1997 10:07:00 AM
From: Jim McMannis	Read Replies (1) \| Respond to of 186894

Intel will compete on price to a certain extent. Let's say for the sake of argument, Intel wants to phase out the Pentium. What's the relative cost of a Pentium II vs a K6? Hard to comete when your cost is a lot greater. Especially when AMD is going for market share and no profit...then again there is AMD's yield problem...but let's assume that is being straightened out. Jim

To: robert w fain who wrote (41145)	11/29/1997 12:07:00 PM
From: BlueCrab	Respond to of 186894

Robert, INTC is competing on price - with itself. Their unit costs of P and P+MMX are so miniscule that they can keep forcing prices to new lows without concern for the prices charged by their outside competitors (assuming those competitors have product to sell!) The big race is between P and PII systems. When do the lines cross? When does INTC say "No more P+ systems for distribution?". At that point, AMD and CYRX will have the whole P market to themselves, and can play the obsolence game. Had the softies been able to anticipate the velocity of INTC's mU advances, the line would have been crossed already. The killer apps aren't ready yet, and those bringing them to market first will be the big winners (along with INTC, of course!). Just my ramblings... Jeff