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

To: Barry A. Watzman who wrote (44423)	1/8/1998 12:19:00 PM
From: Mary Cluney	Respond to of 186894

Barry,>>>I SPECULATE, is that he has a personal vendetta against Intel.<<< I am shocked, shocked, shocked. You mean to tell me that you think people sometimes could possibly act irrationally? This reminds me of a joke about the Middle East: A scorpion wanted to cross a river but could not swim. He asks a frog who says no because: If I take you on my back you will sting me. The scorpion says that would be stupid as both would die. The frog sees the logic and agrees. Halfway across - the frog feels terrible pain - as they are both dying - the frog asks why? Because this is the middle east. I'm horrified, Mary

To: Barry A. Watzman who wrote (44423)	1/8/1998 1:10:00 PM
From: Jim McMannis	Respond to of 186894

Barry, You should understand this... Having been in the manufacturing business I can guarantee that there is no love lost on a supplier that makes huge profits while holding a choke chain on the profits of your company. No boxmaker likes paying high prices for components and having no alternatives. Essentially what Intel does is say..we want the biggest piece of the pie and we'll let you have a small slice...just to keep you coming back. Let's do a little hypothetical role reversal here. Suppose there was just one supplier of "Sillycon" (Silly-minerals) in the world and several equal competitors for Intel. They see Intel making tons of money. They say, let's jack up the price of "sillycon"...so they do. Intel HAS to buy the "sillycon" from them but because of competition can't pass the high price of "Sillycon" on to it's customers. Naturally Intel would become a little bitter and look for alternate sources of "Sillycon"... But alas, just recently there have there been other companies able to provide "Sillycon"...not quite the high grade of that provided by Silly-minerals but good enough to use in Intels mid to lower end chips and for 25% less. Now, if you were Intel you could kill 3 birds with one stone...1. get "Sillycon" cheaper and 2. support an alternative supplier with hope of getting Silly-minerals to drop their prices, 3. Increase your profits. -------------------- I'd say a lot of boxmakers don't like Intel's choke chain...and are secretly hoping for AMD, Cyrix and IDTI....and the sub-$1000 market as the vehicle. Intel on the other hand is basically saying..."we want to be your friend, help you", meanwhile we want all your profit too. <G> Jim