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

To: gnuman who wrote (41627)	12/6/1997 9:54:00 AM
From: Jim McMannis	Read Replies (1) \| Respond to of 186894

Gene. You just asked all the 64 dollar questions. Your concerns are real. One thing I've noticed about intel and the faithful on this thread is a great change. In the beginning of the sub-$1000 paradigm shift Intel ignored it, then it changed to a state of denial or it was termed a FAD that wouldn't last. Now, it's changed to panic and paranoia and the realization that we better do something. Most talk now is how Intel will address the sub-$1000 market and the set top TV market. Trouble is that they are trying to shift to the Pentium II/slot 1 technology at the same time which as you know is more expensive. It's probably easier to address low price points with Socket 7. One could see this coming 6-9 months ago...what's saved Intel so far is their great process technology, ability to yield chips at high speed ratings and the ability to stay one step ahead of the competion with the Pentium II. Weakness in the stock is likely a reflection of the fear of shrinking margins due to the compression downard of the price of PC's due to technology outpacing the needs of the consumer. Downward shifts in PC pricing are likely a one way phenomenon...as they get cheaper the market and the consumer will demand even cheaper product. Intel will likely do well but what's fuzzy is whether or not they will do as well as they have in the past. Jim

To: gnuman who wrote (41627)	12/6/1997 10:54:00 AM
From: Joey Smith	Respond to of 186894

Gene, important questions. Intel's goal is to have 50% of the product mix to be PII by the end of Q2, and over 90% by end of the 1998. By the end of Q2, PII pricing will be equivalent to PMMX pricing, so if it doesn't happen by then, PII will gain tremendous momentum in 2H98 by pure pricing alone. Socket 7 will be dead by the end of 1998. Estimates/roadmaps of Intel's price cuts in 1998 by analysts can be found in articles posted here on SI. Conceivably, you can easily come up with a rough model of Intel 1998 earnings. I don't have time to do this, but if someone is willing to do it, i would be interested in seeing it... joey

To: gnuman who wrote (41627)	12/7/1997 7:44:00 PM
From: Barry A. Watzman	Respond to of 186894

The two things standing in the way of MUCH greater PII sales are price and lack of a clear benefit. The latter is due to a combination of applications not requiring greater performance and bus limitiation. Price will start to fall rapidly, and the introduction of the BX chipset will greatly help the performance perception. I do have one question, however, does anyone know for sure if the 440BX motherboard chipset and a 100 MHz system bus will work with CURRENT PII's (233, 266, 300 MHz), or will it require a new, more expensive series of processors ?