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

To: Paul Fiondella who wrote (44622)	1/9/1998 11:43:00 AM
From: Joey Smith	Respond to of 186894

Paul, re: Joey could you expand a bit on the OEM BTO model conversion At Intel's latest analyst conference (end of Oct. i think) they give this as a reason why 4Q revenues would essentially be flat. But, they expected most of the conversion to be completed by end of 4Q. Essentially, OEMs ordered less from Intel in 4Q to reduce working inventory from 4-6 weeks to 2-3 weeks. I know CPQ has been making good progress, but I don't know about gateway, ibm, hwp. Also do you have any feelings about what happened to the 25% of production in the last quarter that was going into PII production. Do you feel the market absorbed it? yes. From what I read, PII sales really picked up after the Nov. 1 price cuts. Although sub1K retail may have been the strongest growth, high-end PII growth was strong as well. I expect this trend to continue especially with PII-233 priced the same or even lower than PMMX-233. You see if the BTO model were in force then the pressure on Intel would be to produce more 166MHz Pentiums than say 233MHz PII's. If Intel resisted then not wanting to hold inventory of chips they couldn't sell the box makers might shift to a manufacturer of CPU's that could give them the product that matched their sales projections. You also have the price cutting Intel has been doing, making it even tougher to just accept whatever Intel produces. I'm pretty sure Intel is communicating their price cuts to their preferred customers well ahead of time. The Dells, CPQs, HWPs, alerady know about the Feb. 1 cuts and most likely have already ordered chips based on this new price. joey