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

To: AK2004 who wrote (52570)	4/9/1998 5:04:00 PM
From: Frank DiLorenzo	Read Replies (2) \| Respond to of 186894

Intel is very smart to segment its market. Intel is using Marketing 101 to segment its market with Celeron at the very low-end, Pentium MMX and Pentium II at the low to mid end, and soon Merced and other chips at the high end for advanced PCs, workstations, and servers. If I thought the low end was were the action is at (i.e. profits) I wouldn't own the stock. The money is in the mid to high end. According to Gartner Group, Intel will jump to a new level when businesses begin to upgrade when the new Merced chip comes out. If this launch is successful then Intel will do extremely well. Also, don't discount Intel's moves into networking equipment. They don't need to compete with Cisco at the high-end. There will be great demand for networking from home users and small to mid sized businesses in the coming years. Also, I would like to see Intel create an "Intel Online" website, similar to what Yahoo has successfully done with its own site. Finally, there are millions of cars and TVs out there that Intel could expand its market share to. The recent news with Microsoft is good for the future. Also, I believe Intel will partner with other firms to create the best set top box available.

To: AK2004 who wrote (52570)	4/9/1998 7:13:00 PM
From: BelowTheCrowd	Read Replies (1) \| Respond to of 186894

Albert, I don't agree with that, to be honest. The first sub-800 PC to be announced was our HP Pavilion 3260, which uses an Intel P200-MMX. They have certainly not focused a lot of attention on that sector, but clearly they can deliver products for the segment if and when they want to. I believe the issue is a more fundamental one. Should they allocate their capacity to the lower-end chips or use it instead for the higher end ones? If you're AMD or NSM, there's no choice, so you go for the low end. If you're Intel, it is quite reasonable to let the other guys take the lower margin businesses. Granted, the margins on the high-end stuff are dropping too, but they still make a lot more on a PII than they do on a P-MMX, and they are able to sell their full capcity in the higher end models, so it is reasonable for them to continue to do so. So the issue to me is not "is Intel capable?" They are definitely as capable as anybody else. The issue is "where should Intel deploy its own scarce resources?" For now, the answer appears to be "Build as many high-end processors as you can sell, and use excess capacity to build for the low end." mg