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

To: Kealoha who wrote (47358)	2/6/1998 7:56:00 PM
From: John Hull	Read Replies (1) \| Respond to of 186894

Kealoha, please excuse my poaching the question from Paul Engle, but you should hear this officially. The Merced(tm) processor is an Intel product. It is built and sold by Intel. Its revenues belong to Intel. Now, I certainly expect HP will sell servers that contain Merced processors. Their success in that effort should affect their bottom line. Ask HP what they think. Regards, John Hull

To: Kealoha who wrote (47358)	2/6/1998 8:15:00 PM
From: Paul Engel	Respond to of 186894

Kealoha - Re: "what is the profit sharing situation between HWP and INTC for Merced?" My interpretation is that HP and Intel jointly defined the architecture. Intel is designing the first chip - Merced - essentially by themselves. HP is designing - by themselves - a second generation IA64 device. Intel will be the sole manufacturer and will, presumably, sell these chips to HP and anyone/everyone who wants to buy them. The profits on the chips will, then, belong to Intel and and its loyal shareholders. There are other aspects of the IA64 architecture - compilers, operating systems, simulators, chip sets, graphics chips, etc. HP's bottom line will be affected by how their IA64/Merced SYSTEMS perform and sell in the Server and Workstation marketplace. Paul