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

To: Carter Patterson who wrote (63603)	8/31/1998 1:51:00 PM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Carter - Re: " How well are the new Celerons doing in the market " They are doing excellent. All major PC vendors - IBM, Compaq, Dell, HP, Gateway are using the new Celerons. Re: "Are they stealing share from AMD/Cyrix yet ?" As for NSM - they are not even in the same league since their market share has dropped off. As for AMD, Compaq and IBM still buy K6's and just shift these into lower and lower priced PCs as AMD continues to lower the K6 pricing. This also gives AMD somewhat higher volumes in the short term - due to the very low K6 and K6-2 pricing. Unfortunately, I suspect AMD will report significant losses as they try to maintain/expand market share with cheaper pricing because their costs are not coming down as fast as their pricing. Re: " Are they cannibalizing PII ? " Intel will essentially drop the 266/300/333 MHz Pentium II and turn this over to the Celeron line. ASPs for the low priced Pentium IIs are heading in that direction and Intel is merely placing themselves ahead of the curve. The 350/400/450 MHz Pentium II will be the Pentium II market for the next 5 or 6 months, but I suspect Intel will continue to drop the low end (350 MHz Pentium II) early next year in favor of the 350 or 366 MHz Celeron. At that time, Intel will introduce the new Katmai version of the Pentium II and the new KNI capability will add value and price to the Pentium II line - and help maintain - and hopefully expand - ASPs despite the expansion of the Celeron line. Re: "you listed your favorite stocks and included PRIA. Do you still own it ? Any knowledge of their preferred vendor status at INTC ? Are they the lead horse for 300 mm ?" I still own PRIA - and their stock has collapsed due to the collapse of the semiconductor equipment sector - too much fab capacity and deep losses (or very low profits) for most of the industry. The 300 MM program is not even a real issue these days - with very few companies willing to invest in new capacity these days. PRIA, AMAT, LRCX are in for a tough period that may stretch out for more than another year. Re: "do you have any insight into quality issues - the Yahoo thread is full of disgruntled employees..." I don't know anything about this. Paul