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

To: Jim McMannis who wrote (55491)	5/14/1998 2:11:00 PM
From: Adam Nash	Read Replies (2) \| Respond to of 186894

Don't fret about Dell and GW getting all the benefits from Intel's R&D It's not true. Intel holds the cards, in the end. I can't believe I'm hearing this: 4 years ago you couldn't pay someone to own a boxmaker. Suddenly now everyone wants to own one at any price. I guarantee you that within the next 5 years, the fad will change. Xeon is the first indication that Intel knows it can get more anytime it wants. Dell/CPQ making good margins on servers? Easy, Intel can absorb them by charging $4k+ for Xeon. Of course, the boxmakers have to take this because Intel will also deliver them Celeron's at $60 so that they can actually make money on sub $1K computers. In the end, Intel will defend their average selling price targets. Merced will follow in this path, I expect the first versions to be Xeon-priced. Later, there will be Celeron Merceds, Pentium II Merceds, etc... (I mean those names in terms of the product categories they represent.)