Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: robbie who wrote (17119)	3/5/1998 12:31:00 AM
From: BelowTheCrowd	Read Replies (2) \| Respond to of 70976

Robbie, I think it would be wrong to ascribe this to a "Compaq problem." It is an industrywide issue which is impacting everybody. The cutthroat environment forces all of us (I'm at HP, BTW) to get leaner and leaner. So inventories are necessarily going down, and INTC is feeling the short term effect of all of us soaking up the "buffer" inventories that we've historically wanted to keep. However, it is necessarily a short term effect. There's only so much excess inventory to burn. And of course, it leads to LOTS of potential problem next time there's a squeeze and we can't get all the chips we want when we want them. Then INTC is free to put the screws on everybody. mg