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

To: Randy Ellingson who wrote (45830)	1/16/1998 4:46:00 PM
From: dmf	Respond to of 186894

Randy: From International Data Corp.'s Predictions for 1998 The marketplace is completely reorienting around the goal of building and supporting a billion-user wired marketplace by 2005. In 1998, IT suppliers will need to reorient to that goal and adapt to the presence of a new crop of "power brokers" coming to the marketplace. If you focus on these points, very few events will completely surprise you in the year ahead. ______________________ Hasn't Andy Grove been talking about "a Billion Connected Computers" for some time? Won't low-end boxes help get him there? When my kid was 6 or 7, our Commodore 64 broke down and we couldn't be without it without going crazy. So, we did the obvious <gg>. We bought another. When my family, who thought we were on the far edge for owning ANY computer, questioned our sanity, my son spoke in his most convincing voice, pleading with her to understand, "Grammy, you'd be s'prised what you can do with two 'puters". Now, when I know what he did with those commodores, just think what INTC and Andy Grove and the gang can do with a BILLION connected computers! All INTC longs should enjoy that picture of AG "playing" with the BILLION + out there! dmf

To: Randy Ellingson who wrote (45830)	1/21/1998 2:34:00 AM
From: Mo Chips	Read Replies (1) \| Respond to of 186894

<<Much like the auto inductry>> And if Intel gets a pe like GM it would trade for $30 a share. I hope that intel doesn't turn into an auto like co just puming out more widgets with incrementally better product. Many people point out that the PC penetration in homes is 40 or 45%. I think that corp spending is more important. Yes, at some point we will have 90+% household penetration, but it could end up being like a VCR, where people only buy more if their's breaks... Corporations need more power and technology to be competitve. The information age does include the average guy, but the real reason for progress is because corporations can better plan, manage, coordinate, etc with technology. Corporations will always be willing to pay a premium. Consumers WILL NOT. Lets say that in 1 year the household PC penetration goes to 90%. And intel gets 100% of this business. And lets optimistically say the ASP to intel is $200. This would then be $9 bil in revenue. I know this is a big number, but in comparison, intels total annual revenue was $25B in 97. So they shoot their wad and add 36% more revenue, so what. Then they don't sell another PC to the consumer for a couple of years or more. Where would the growth come from? BUSINESS! I personnaly believe that there is TOO MUCH focus on low end, household consumer PC purchases. The BIG bucks are selling to the corporation. We should debate whether or not this side of the business can grow.... Mo