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

To: John Koligman who wrote (57391)	6/6/1998 5:17:00 PM
From: Jules B. Garfunkel	Read Replies (1) \| Respond to of 186894

John, Your, "IBM's PC business has been going downhill for some time now, they make their money on mainframes, midrange machines, and services..." While I agree that IBM's PC business has been going downhill for sometime now, I have to correct you on the rest of your statement. No,... IBM makes their earnings on their stock buy back program and the lowering of their tax rate from 39 %, 18 months ago, to an expected 31.5 % now. While their services business is indeed growing, it only has a 23 % GPMs. These service division's revenues are replacing IBM's eroding hardware, ("mainframes, midrange machines,") and software business revenues. The latter H/S divisions had contributed 70 % in the past. And what are these "mainframes and midrange machines" going to be replaced by? You got it. IBM will replace selling their IBM manufactured Servers and Workstations to their customers, with now selling for Intel Xeons and Merceds. Jules