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

To: Barry Grossman who wrote (58866)	6/26/1998 5:34:00 PM
From: The Vinman	Read Replies (2) \| Respond to of 186894

<<You have it backwards.>> I do? It sounds like you are making the argument that INTC is dropping prices to drive out the competition. INTC has no choice but to drop prices, and if you look at the numbers from recent quarters they are experiencing lower rev's, which means margin pressures are a bigger negative than the positive of increased demand, not a good sign.....box makers are getting killed with cheaper ASP's and INTC has no choice but to cut prices. What is Compaq going to say? "Hey, we are experiencing lower margins, you can cut prices if you feel like it." I don't think that is what they are telling INTC. Vinman

To: Barry Grossman who wrote (58866)	6/26/1998 10:21:00 PM
From: Francis Chow	Respond to of 186894

Chip prices are going down because Intel (90% of the supply) keeps dropping their prices every quarter (because of their incredible manufacturing prowess) and the competition (10%) keeps dropping their's below Intel's in order to jump start their sales and keep the product moving - even if it moves at a loss. Then Intel is behaving like that stupid rooster, foghorn leghorn, in Saturday morning cartoons - his old nemesis, the barnyard dog, puts on a rooster costume and courts the old spinster hen - foghorn decks the competition, marries the spinster and yells "I won, I won . . . shucks wasn't there some way I could 'a lost?"

To: Barry Grossman who wrote (58866)	6/27/1998 1:34:00 AM
From: Darren	Respond to of 186894

You have it backwards. Chip prices are going down because Intel (90% of the supply) keeps dropping their prices every quarter (because of their incredible manufacturing prowess) and the competition (10%) keeps dropping their's below Intel's in order to jump start their sales and keep the product moving - even if it moves at a loss. The result of all this on the market is that PC makers can sell their products for less and less, the price the buyers pay at the margin keeps dropping which increases affordability and boosts sales, and INTC makes every increasingly larger and larger piles of money while the competition takes it in the shorts. Pretty good game plan - IMO. And it's been that way for 10 years! At least you'll profit from this knowledge while "others" will flounder...cracks me up when I hear everybody bashing INTC. I can't think of a better franchise, except ((software))...