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

To: fut_trade who wrote (58092)	6/16/1998 1:29:00 PM
From: Paul Engel	Respond to of 186894

Peter - Re: "Maybe you can estimate Intel's declining earnings over the next few years as they flood the market with cheap microprocessors." You are clearly incapable of realizing that Intel participates in MANY MARKETS. In the x86 market, Intel is in the process of RAISING their ASPs by introducing faster, more expensive XEON processors for the workstation and server segments. They continue to lower their Pentium II and Celeron pricing but these processors have HIGHER (on average) ASPs than the Pentium MMX devcies which they ar REPLACING! As for StrongARM, Intel has a very large business in embedded microprocessors - one they helped establish in the mid 1970s with the first 8048/8749 embedded microcontrollers. Intel sells several 8 bit, 16 bit and 32 bit families of embedded microcontrollers - see some of my previous posts. These have very high volumes, lower APSs but take up Intel's older wafer fab capacity that is not quite state of the art for x86 CPUs. This gives the microcontrollers an extremely low cost basis since they are manufactured on fab line sthat have been bought and paid for - depreciated - by the production of x86 CPUs. The StrongARM will become another entry into this microncontroller market - taking advantage of the StrongARM's low power/high performance capability coupled with Intel's low cost, high yield wafer fab manufacturing capability. Paul