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To: paul flint who wrote (43643)1/2/1998 6:25:00 PM
From: Sonki  Read Replies (1) | Respond to of 186894
 
1000 pc benefits MSFT the MOST. extra cost of production SW is 0.

intel may have good sales but not earning as margins will get squeezed. sorry.



To: paul flint who wrote (43643)1/2/1998 7:27:00 PM
From: Jules V  Respond to of 186894
 
It sure looks good according to the Business Week Dec 22 article's table of chip margin numbers.

Re: <<The $1000 PC phenomenon is not happening at the expense of Intel, IMHO. To the contrary, I believe.
While the price of CPU chips seems to have fallen a lot lately, it is only a fraction of what has been
happening in the world of RAM and hard disks. I am amazed to see 32 MB EDO SIMMs for under $50 >>

Intel last quarter guided gross margins long term down to near 50%. How long term did they mean.



To: paul flint who wrote (43643)1/2/1998 11:24:00 PM
From: Joe NYC  Respond to of 186894
 
Paul,

When the first ATs were going for $5000, the CPU was less than 5%. Here we are now, with $1000 200MMX systems, and the CPU represents 20%.

Do you think it is sustainable?

Joe