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

To: gnuman who wrote (60624)	7/17/1998 1:09:00 PM
From: Paul Engel	Read Replies (3) \| Respond to of 186894

Gene - Re: " So how many shares of Intel do you own? Be honest." More than ZERO. Actually, a lot more than ZERO. Re: "Celeron list price to drop below $100), what impact do you see on Intel margins and ASP's?" The drop to $100 in ASP (down about $50) will be accompanied by the introduction of MENDOCINO with an ASP of about $190 - $200. The $100 will act to lower the ASPs but this will be offset by the Higher price of the Mendocino ( + $40) to make a net-net neutral impact on ASPs, assuming equal sales volume. The major effect will be on AMD. AMD's top of the line K6-2 300 Mhz is pegged at $150 - $160, tied to the Celeron 300 Mhz device. They will HAVE TO DROP THEIR PRICE to around $100 to match Intel's $100 Celeron 300 Mhz price - and their b*stardized 333 Mhz part - in short supply and requiring a goof-ball 95 MHz Motherboard - won't be able to match the 333 Mhz Mendocino performance OR PRICE. As you should know, Gene, one of Intel's strengths is to add newer, higher performance devices at the HIGH END of the ASP spectrum while dropping ASPs on older, slower processors - with an increase in volume due to pricing elasticity, and thereby maintain - and slightly increase - overall ASPs. Of course, this assumes that Intel has the products in the pipeline and gets to change the ASPs on their own. And this seems to be the current situation, with AMD deep in financial doo-doo and playing second string to Intel in the performance category. Paul