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

To: Paul Engel who wrote (59573)	7/9/1998 12:23:00 AM
From: kash johal	Read Replies (1) \| Respond to of 186894

Paul, In Q3 what percentage of devices will be Xeons,Medocino's,Katmais. And what portion will be 350Mhz and below PII and Celerons in the Clones R US market. It is this mix which will be key. We will know within 3-6 months. Regards, Kash

To: Paul Engel who wrote (59573)	7/9/1998 2:39:00 AM
From: Glenn Barrera	Read Replies (1) \| Respond to of 186894

You are one of the few here who do not view intc's overall margins as "guaranteed". What is your estimate for Xeon's shipped in the final 2 q's and price breakdown? How much of this revenue is replacing Pentium Pro rev? Since 300 class will be baseline shortly, do you think business purchasers will finally jump on the "sub XXX" bandwagon? Many people here think the earnings number is what is most important tuesday, but I think you would disagree. What is your estimate of what intc will be trading at W - F next week?

To: Paul Engel who wrote (59573)	7/9/1998 7:16:00 AM
From: Kealoha	Read Replies (1) \| Respond to of 186894

Paul Engle: I was starting to seriously think about getting a 400 P2 machine very soon. With the AMD losses will the price war come to an end? This is as low as they go for P2 prices for a while? I have my credit card in hand and Dell on the phone.....

To: Paul Engel who wrote (59573)	7/9/1998 10:53:00 AM
From: Larry Loeb	Read Replies (2) \| Respond to of 186894

Paul, In my opinion the lower end of the x86 product line has become somewhat commoditized. I believe that Intel has realized this and cut their prices on the low end more aggressively than they might otherwise have done (of course they would have continued their established cuts in any event). They have done this, not to destroy their competitors (who are doing an excellent job of self-destructing without anyone's help), but to keep their fabs running at capacity. I would have to agree with Kash, that this will have the effect of cutting Intel's margins. However, I agree with you that the high end products, especially Xeon, will partially compensate for this. These products are unique to Intel and, therefore, allow for higher margins. In any event, these price wars have been accounted for in Intel's price, perhaps excessively. We have entered into a period (which we have been in for some time) where the processing power at the high end has exceeded the requirements of most software. This has been experienced before and will be again. What is different this time is the size of the market has grown and new customers are willing to purchase machines based on older technology. When newer, more processor intensive, applications arrive, I expect a large surge in sales from new buyers and from buyers of these sub $1000 systems. Personally, I like to get 5 years out of a PC for home use. I purchased a Pentium 60 in February 1994 and I don't expect to need a new PC until next year or, perhaps, 2000. I don't believe that someone purchasing a $1000 system will be happy with it for more than 2 years. We'll see. Larry