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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (20074)	6/10/1998 2:37:00 PM
From: Big Bucks	Read Replies (1) \| Respond to of 70976

Brian, What INTC has that most others don't have is "BUYING POWER" When they or IBM place orders it isn't for 5 or 10 pieces of equipment it is for all their fabs which could be "SEVERAL HUNDRED" pieces of equipment over the course of 1-2 years. Once a piece of equipment is selected as "tool of record" there is a massive buy order to bring all fabs up to the same manufacturing standard. This insures consistency/continuity and reproducibility in the manufacturing process. Kinda like making cookies, they all look alike and are indistiquishable from cookies made at another plant. The processes and equipment set are identical, no variation is acceptable. When selling "armaments" an arms merchant gives preference to the side with the most money and biggest buying potential. Keep your best customers happy and you both benefit from the "marriage". Just my opinion, BB

To: Proud_Infidel who wrote (20074)	6/10/1998 3:47:00 PM
From: akidron	Read Replies (2) \| Respond to of 70976

Brian, u and jtechkid u are way too optomistic IMO with your market recovery forcasts... we have not yet bottomed... there is still too much denial... capacity his not diminished, in fact as yields improve it is increasing faster than demand... INTC may be one of the most profitable companies, but its margins are under pressure... the easiest way to restore them is to shrink the cost side, as right now they have no pricing power on the revenue side...