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

To: Francis Chow who wrote (59491)	7/8/1998 9:33:00 AM
From: gnuman	Read Replies (1) \| Respond to of 186894

Intel October Pricing and Sub-0's Based on PC Weeks projected pricing for October on PII400 $375 and PII350 $210, I think Intels' desktop CPU offerings will look something like this. PII450 $525 PII400 $375 PII350 $210 Cm333 $175 Cc300 $110 Cc266 $89 (Note: Cm is Mendocino and Cc is Covington) While the PII350 was originally planned to be in Q4 Performance 1 systems, (PC's costing $1.2K to $1.5K), it now looks like they'll be in the Basic 2 PC, ($1K to $1.2K). In fact I wouldn't be surprised to see some sub-0's based on the PII350 for the Holiday selling season. Based on guesses of product mix, I also think the ASP will fall close to $200 in Q4. If Mendocino is successful it will pull ASP's down. (And they'll have to give Covington away). Where will AMD have to position the K6-2/300 and 333? They probably need compete against Cm333 at a heavy discount. This probably means they will be predominantly in sub-0's. So it looks to me that holiday sales of PC's will be fantastic, but at a cost to product mix. You'll be able to get a lot of PC for $799. And it also appears there are too many choices in the sub-0 category, (seven different chips? And that doesn't include Cyrix/NSM, IDT, etc.). The box makers will have some tough decisions. What will be the impact on the business segment? Sub-0's are now so powerful it has to impact the mix in that segment.