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

To: gnuman who wrote (43089)	12/22/1997 4:59:00 PM
From: Mary Cluney	Read Replies (2) \| Respond to of 186894

Gene, >>>Re; the Automotive analogy. Part Dos<<< How much would GM be worth if they didn't have Ford, Chrysler, Toyota, Nissan, Honda, Volkswagen, Volvo, Fiat, Peugot, Renault, Mitsubishi, Subarau, Hyunda - not to say Audi, BMW, and Mercedes to compete with? Mary

To: gnuman who wrote (43089)	12/22/1997 5:26:00 PM
From: David S.	Read Replies (3) \| Respond to of 186894

Gene, The issues you raise are worthy of concern, even for long term Intel bulls. The sub $1000 PC can reflect not only pricing changes, but market changes, perhaps reflecting more buying by the average Joe Six Pack, but possibly also a reduction in expectations as to what is needed by businesses, educators, etc. to get the job done. If the latter viewpoint is the case, the bloom is truly off the rose. ....On the other hand, if this just reflects a market expansion, then it is also a market opportunity, and I can't see a company better attuned to take advantage of that change. If not everone needs the same high level, latest machine, then you just sell different machines to different people for different needs. ....More importantly, Intel still owns the CPU architecture that is common to 90% of the machines and very few want to be driving an AMD or Cyrix engine. Its an old marketing story. Potential buyers come in on the basis of ads for cheap machines with K6 engines. But these are largely loss leaders, the bait for bait and switch, and most end up buying Intel based machines due to the immensely complex but predictable reasons why people buy brand name products. While computer prices may be going down, I don't see any downtrend in the value of the Intel brand, rather, it is rising world-wise and class-wise. So from my view, the Intel wealth engine for shareholders will continue to pace forward even if they practically give away the chips. There are billions of PCs to be sold to satisfy world demand and the time is now, over the next 5 to 10 years. Who is better positioned to serve that market? ....Sure there is a market for Big K soda, its cheap and wet and sweet. But Coke in all its varieties, will continue to beat out the Big K's for a long time to come. Intel will only decline long term if they miss the next generation of computers that are based on a different architecture (neural nets, fuzzy logic, etc.). But that is the next generation, with its own evolutionary path. Don't forget Intel started about 25 years ago, while the public only heard of them about 4 or 5 years ago. We have got lots of years of profitable explosive growth staring us in the face. Don't get scared off. Regards, David S. (no. 1) Long on Intel and Iomega