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

To: tom jones who wrote (63446)	8/26/1998 4:56:00 PM
From: gnuman	Respond to of 186894

CeleronA, What impact on the business segment? The CeleronA provides about the same Business Winstone 98 as the same speed PII. For example, the CeleronA333 has a Winstone of 26.3 vs the PII333 at 26.8. According Tom's price roadmap, the PII333 was at $320 in July with a scheduled drop to $280 in Sept. (All prices are 1000 pc qty). The Sept. Price for the PII350 is predicted to be $370. Winstone 98 on this part is 28.3. (Note that this is the part where demand exceeded supply, and Intel has just indicated they have ramped production up to meet demand). The CeleronA333 is introduced at $192, with articles stating there will be rapid price decreases. Product-- Price-- Winstone98 CA333-- $192-- 26.3 PII333-- $280-- 26.8 PII350-- $370-- 28.3 As I've noted before, both HP and IBM have introduced CeleronA into the business segment. HP, in fact, priced the CeleronA333's a couple hundred dollars higher than identically equipped PII333's. (Note, HP's prices are estimated reseller prices). That's a little confusing. Do they expect CA333 to be more desirable, or is it just phase-out of product? Note also, the basic VectraVE with PII350 is priced the same as the identically equipped CA333. ($1415/$1421). A loaded VectraVE with PII350 is $2137 vs an identically equipped CeleronA at $1780. Kind of strange pricing. Clearly, HP will have much better margins on the entry level CA's. BTW, these CeleronA price points are 1 to 2 segments above where Intel had slotted them! It makes marketing sense if HP and IBM, et al, can position CeleronA as a desirable business PC. It provides the performance for the sweet spot of the segment, and offers better margins for the makers. Originally Intel planned to intro CeleronA333 sometime in 1H'99 at a price of $210, (from the first Intel Roadmap as posted on Tom's Hardware). They've pulled it in almost six months at a lower price. Can we expect higher speeds and perhaps a 100mHz FSB in the future? I would guess yes. Will they come down the normal learning curve? Probably. I also believe that CeleronA will do an effective job of keeping AMD out of the business segment. But if it turns out these are very popular in this segment, it may negatively impact revenues and earnings. These are just my opinions.