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

To: Steve Porter who wrote (59758)	7/11/1998 10:26:00 PM
From: Dale J.	Read Replies (1) \| Respond to of 186894

Steve, No, I think both scenarios are losing scenarios. Well, Intel's approach is clearly geared towards the long-term. We probably disagree over its effectiveness. You believe AMD will survive and I think they will have to alter their x86 course to survive. My point is this won't stop. As you said the more AMD makes in terms of CPUs the more Intel will cut prices. Don't you remember the exact same thing started happening 4 years ago for DRAM. Well Samsung turned on the DRAM spigot and walked away in an attempt to destroy the competition. AMD just can't do that, even in their wildest fantasies. Have they though.. and how low are you willing to accept.. 10%? 20%.. give me a number.. because as Stockman is so happy to remind everyone on any thread that isn't Intel.. things can just keep falling. Well I think profits will gradually start to increase for INTC. Due to XEON etc. AMD, unlike the DRAM companies, needs and desperately wants higher margins. They don't have any alternatives as their creditors are at their door. "Jerry, we know your in there now give us our money back". "Never discount a foe until you have seen their dead body with your own eyes.."..some very wise advice if you ask me. Yes, we agree. That is very wise. But that is my point INTC is taking AMD seriously and vigorously responding. I'm not counting AMD out yet, but if they continue on the same path, then they have less than a year. JMO of course. ..DOJ will _FORCE_ Intel to spin off everything but CPU development so that they can't "bully" box makers into using their video cards, motherboards etc.. that would hurt even more than AMD selling 5M CPUs a q. Well maybe not, the DOJ lost the latest round and the Appeals Court sent a message to the FTC/DOJ about meddling in the technology business. Steve, you and I are actually in agreement over AMD. They sent the wrong message to Intel, and now they are paying a price. Dale

To: Steve Porter who wrote (59758)	7/12/1998 2:15:00 AM
From: Barry Grossman	Read Replies (1) \| Respond to of 186894

Steve, <<Don't you remember the exact same thing started happening 4 years ago for DRAM. Lucrative business. Everyone piled on.. capacity out the arse and prices in the can.. well look it's happening again>> Excuse me but which DRAM supplier was it that had 90+% of the business when this capacity build up started happening? My point - NOT THE SAME THING. Barry

To: Steve Porter who wrote (59758)	7/12/1998 4:21:00 AM
From: Jacques Newey	Read Replies (2) \| Respond to of 186894

Steve, Dale: To get to Andy's vision of a billion connected PC's, prices will have continue to come down. Period. I live in Egypt. Egyptians that I work with (degreed engineers, scientists, even middle managers) do not make enough money to buy a PC for home use. These people are Egypt's middle to upper class! Yet, they simply can not afford a PC. I would venture to guess that much of the third world is in the same boat. If worldwide penetration of PC's is a desired outcome (Andy and Craig's stated one billion connected PC's), then prices must continue to drop. I don't like it, but it has to happen! Who can still make a profit in this low price segment? We have some recent clues as to who will, and who won't. How do you manage price cut backs? Intel has some experience with this. I suspect this is a hotly debated topic within Intel. I sleep easy at night, confident that all the right people at Intel are laboring over the issue. Do you accelerate price cut-backs to crush the competition with demand growth flattening? Apparently so. "No pain, no gain"? How much money will Intel make in this environment? I am confident that Craig and Andy have Intel shareholder's long-term interest at heart. They have no interest a losing operation. Unlike AMD? Of course, this discussion all relates to the low-end segment. Don't forget the high end where profits are easier to come by:). Just my opinion...