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

To: Mohan Marette who wrote (47622)	2/11/1998 11:03:00 AM
From: Home-Run	Read Replies (5) \| Respond to of 186894

Should I buy Intel because of the following news: The following is an abstract of a news report on today's (Feb 10) Commerce Daily (Chinatimes online) in Taiwan: (www.chinatimes.com.tw): In the first month of 1998, Intel's Pentium II chips has become the hottest product in Taiwan. The output of Pentium II based motherboards has seen significant increase in almost all the PC motherboard manufacturers. The Pentium II motherboards were sold as soon as they were made. In Chi Chia and Wei Hsin (phonetic translation, two major motherboard manufacturers), Pentium II has exceeded 50% of the output. Pentium II's strong sale indicates the success of Intel's price reduction strategy and the confidence in Pentium II in the PC market. Taiwan motherboard described the Pentium II sale as "they are sold as soon as they are made. In late 1997, most of the manufacturers did not foresee that Pentium II picked up so fast. They took a cautious approach when they ordered 440LX chips. Therefore, some manufacturers are now facing the problem of not enough supply of Pentium II chips. The demand for Pentium II is so strong that a shortage has surfaced. The chips have been taken by major manufacturers before they reach the market. Several major manufacturers in Taiwan have been able to get full support from Intel because of their strong relationship with Intel. Therefore, the top three manufacturer have been able to make Pentium II 50% of their motherboard output. Anylyst Chi Chuan Chen said that this is indeed a very good beginning for Pentium II. Last year was an abnormal market and Intel was forced to adjust its marketing strategy. Only until recently, did Intel begin to understand the taste of the market. He said that if Pentium II can grap 40% of the market share by the end of second quarter, it would indicate that Intel has successfully educated the market and will no longer be forced to cut prices. Taiwan analysts pointed out that while Pentium II has been successful, the price and strategy of Covington and 440EX chips of Intel will decide the market map of Socket 7 and Slot 1.