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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic -- Ignore unavailable to you. Want to Upgrade?

To: Frank Ellis Morris who wrote (19725)	6/3/1998 5:48:00 PM
From: Sonki	Respond to of 27012

Frank, today i was going to disagree w. u. re: pc & servers. Server chips which will be announced at the end of the month will be selling for $2k. current 400Mhz sell for $770. Current intc chip prices will go down when the new chip is announced. Dell will be selling the workstataions servers from $10-20k ( will be buying chips from 1k to 2k+) in volume. $1k for smaller cache mem. Also Dell will coming out with Dual monitors on a workstation. So as u move your cursor all the way to right it will jump to the next screen. This is very cool. U know i love server business. Just from above approxmiate numbers you can figure margins can be pretty fat for both intel and dell. for. e.g. Dell margins are 21 or 23 ( i think) .. Sun margins are 50+ due to the high end servers which sell for $1m a piece. So this is the kind of future Dell can look forward to if and when it gets into high end servers. Currently sunw and Ibm and hwp have this market. Dell will start with low end servers and improve margins sharply over their PC sales. Maybe in 3-4 yrs maybe and it is my hope Dell will start moving into high end servers. I hope there will still be demand for those. This world is going to change very quickly in next 3 years. U will see. I can see some of it now. Look at the Fon announcement and i am sure lots of people working on this kind of stuff.. Today intel made a new 52 wk low. None of the above story could make us feel anybetter.