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

To: Barry Grossman who wrote (59043)	6/28/1998 11:07:00 PM
From: kash johal	Respond to of 186894

Barry, Your analogy is reasonable, but the conclusion is questionable. There are many TV sets sold today, not many set makers make good profits. There are millions of VCR's sold today, but not many are making good profits. Clearly the low end will not be very profitable as PC's become commodities. An example is the Microcontroller business that Intel invented in the early 80's. Approx 1-2 billion or more of 4/8 bit microcontrollers are sold every year at prices in the $1 range for controlling lots of simple functions. They key is to have leading edge products where there is limited competition and high margins and build commodity products on already depreciated production lines. I think Intel strategically is positioned very well with Xeon and Merced. They will lose market share in the low end, but they do have the high end. Regards, Kash