Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: gnuman who wrote (58011)	6/15/1998 3:18:00 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 186894

Gene, RE: "By staying in the market, (sub-0's) is it fair to assume (with all the technology improvements), that this segment will continue to displace the mid to high end for some time to come? When do you think this strategy will pay off for the investor, (higher share price?)" ___________ When do you think this strategy will pay off for the investor? What makes you think it ever will? If this down trend in computer prices continues, PCs will go the way of TVs and VCRs. Intel will still have the high end but the rest of the market will look totally different a year or two from now. It's started and it can't be stopped. Now way will the Sub $1000 market will go away. Au Contraire, it will beget the sub $500 market. IMHO, Intel is being sucked down a black hole if they choose to participate in this market. Maybe Intel has discounted the idea that the inexpensive chips they make for this market will actually "sell". What if they really do? <G> Jim

To: gnuman who wrote (58011)	6/15/1998 3:51:00 PM
From: Paul Engel	Respond to of 186894

Gene - Re: "Can I assume these have been Pentiums till now?" Mostly - but a few Celerons are now making it into that category. Re: "I've seen estimates AMD will ship 4 million CPU's in Q4. What are your estimates?" I don't have an estimate. AMD can't predict their own K6 shipment one quarter in advance so far be it for me to be able to do it. What are your estimates? Re: "Again, were these mainly Pentium socket7 devices? What do you think slot1 devices in this segment will do to margins? How many sub-0's do you think Intel will support in Q4? " Intel will blow out the remaining Pentium MMX (0.35 micron) inventory in Q3 and Q4 (wafer starts ended a few months back) and push the now-cheap 266 MHz Celeron into the sub $1000 segment. This will force AMD and NSM/Cyrix into further deep price cuts. Re: "How do you think these processes will impact the high end? If we get ever increasing performance at ever lower prices, how will Intel increase it's ASP's in the PC segment?" The high end will get HIGHER in performance. Intel's Modus Operandi is to offer a SPECTRUM of CPU price and performance offerings. The high end is always invigorated with newer, faster CPUs while the "existing" spectrum is pushed down in price/performance. Intel's new SEGMENT strategy - branding Pentium II devices for high, mid and low ends is an improvement on this methodology - allowing VERY high price differentials between Segments (e.g., Celeron vs. Xeon). This constantly provides better speeds at constant or lower prices as well as higher priced/higher performance CPUS for the "performance" conscious consumer. Overall, the ASPs will trend up as Slot 1 devices will have diminishing competitive pressure as the volume of Slot 1 devices climbs and socket 7 volume winds down. re: "By staying in the market, (sub-0's) is it fair to assume (with all the technology improvements), that this segment will continue to displace the mid to high end for some time to come? When do you think this strategy will pay off for the investor, (higher share price?" Assuming the overall economy stays healthy and S.E. Asia/Russia do not sink the world markets, Q498 financials should show the first positive signs of this strategy. Paul