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

To: Paul Engel who wrote (56127)	5/28/1998 8:26:00 PM
From: Exciton	Read Replies (2) \| Respond to of 186894

Market Estimates for Xeon: Do They Exist? Paul, As I have watched the analysts and major financial papers and journals continually harp on the threat to Intel from sub $1000 PC's, increasing competition at the low end, etc., I am struck by the total lack of analysis or even discussion of the impact that Xeon may have on earnings during the second half of the year. As you know, prices that have been tossed around are as high as $4000 per processor. It seems to me that prices like that could make up for a lot of reduced margins from the low end. This would seem like an obvious point to be considered by the so-called analysts especially considering that Xeon is a significant performance leap over the Pentium Pro for low to mid range servers. Unless I am mistaken the P Pro hasn't changed all that much since late 1995 while network loads have increased tremendously. Offhand, I would think that the server OEMs are expecting a major wave of corporate purchases once Xeon hits the streets. Again, there seems to be no analysis of the size of the market, or the earnings impact on Intel from these trends. Instead, the analysis all focuses on the wildly misleading numbers from PC Data on sales of sub $1000 PCs. If I hear one more article say, "according to PC Data, 40 percent of PC sales are for sub $1000 models", I am going to puke. As we all know, those numbers only represent retail sales. The reality is that those machines represtent less than 10 percent of the overall PC market. From my perspective, the analysts are ignoring 90 percent of the market and the most profitable part of it--processors for servers. Now that I have vented, do you or anyone else on the thread have market estimates for Xeon and further down the road--Merced?