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

To: Paul Engel who wrote (44196)	1/6/1998 9:28:00 PM
From: Kirk ©	Read Replies (2) \| Respond to of 186894

Great data Paul It occured to me that many rush to the conclusion that Intel and the big PC makers will all take it in the shorts with the $800 PC. I don't think so. With higher volumes, chip prices are lower as you clearly explain. What looks like a loss at first looks better once the overhead savings is spread over the whole line or many lines. Still, there is more $ to gain by building the PCs, especially the portables, in Korea and Malaysia, where they buy parts in dollars, sell finished product for dollars and pay labor in deflated currency. If HP didn't see a good way to make profit in this market, then I am sure it would get out of it as it did with the disk drive market well before it crashed. I think it is actually good for Intel to expand their product line and go after the $800 PC with HP. I sure hope it brings great numbers to HP long term too. It seems like this could be a very healthy partnership where both come out better than they would on their own. regards Kirk out New Article at: suite101.com