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

To: Mary Cluney who wrote (43075)	12/22/1997 3:44:00 PM
From: greenspirit	Read Replies (1) \| Respond to of 186894

Mary, 10 years from now or less, when the average computer processor speed is 1 GHZ or better, the people who are saying the public is satisfied with P-200 speed will look rediculous. Merry Christmas, Michael

To: Mary Cluney who wrote (43075)	12/22/1997 3:58:00 PM
From: gnuman	Read Replies (2) \| Respond to of 186894

Hi Mary! Re; the Automotive analogy. That's a great metaphor and here's my slant on it. Like PC's, the automotive market is segmented into high volume, low priced and low margin utilitarian models; a mid range; and some low volume, high performance, high priced, high margin products. Consider Ford, GM, Chrysler, Toyota, Honda, etc. as suppliers of the high volume low-end/mid-range segments and Lexus, BMW and Mercedes as suppliers to the low volume segment. While I'm not really familiar with automotive margins, clearly BMW, Lexus and Mercedes create the more Intel like margins, while the others generate AMD/Cyrix like margins. (Probably more, since the automotive guys at least make a profit. Let AMD/Cyrix be the Yugo/Hyundai guys. ;-) ) But in the PC CPU business, Intel is Ford, GM, Chrysler, Toyota, Honda, Lexus, BMW, Mercedes, etc. all rolled into one! So carrying the metaphor on, can Intel sell enough hi-margin Lexus', BMW's and Mercedes to compensate for the other models? 50% GM is tough, especially if market sentiment shifts by deciding that a Ford does the same job as the Mercedes, so why not get one. Like automobiles, there used to me a certain issue of PC snobbery, (my machines a lot better then your's, ha ha). But if sentiment shifts to, "I got as much machine as you did for half the price, ha ha", what happens? I don't pretend to be smart enough to know what's going to happen in the future, (heck, if I was I would have sold my Intel at $102 and bought back at $69), but I also think the thread can use some contrarion opinions once in a while. I get a lot out of the responses. I met you that way! ;-) Have a great Holiday, Gene