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

To: Paul Engel who wrote (63869)	9/3/1998 2:06:00 PM
From: Joey Smith	Respond to of 186894

Ron, Intel will use their price cuts discriminantly...to phase out older CPUs and to bring higher margin CPUs into "high-volume" price ranges. This will not be an across-the board price cut...one of the benefits of Intel's segmentation strategy. joey

To: Paul Engel who wrote (63869)	9/3/1998 4:47:00 PM
From: DragonBoy	Read Replies (1) \| Respond to of 186894

Paul, Is it possible that Intel could make the KNI overdrive next year to upgrade the current PII and Mendocino? Or the user need to buy a complete new CPU?

To: Paul Engel who wrote (63869)	9/3/1998 7:17:00 PM
From: Road Walker	Read Replies (4) \| Respond to of 186894

Paul, re: "Ron - Re: " How do price cuts help profit margins?"" People often get confused between gross margin percent and gross margin dollars. Pricing in a dynamic market is an art. There is almost always lower UNIT sales at incrementally higher prices, at a certain hard to define point the lower UNIT sales (because of consumer price resistance) overtake the increased gross margin dollars. Determining when increased unit sales at lower gross margin will produce more profit dollars is a little bit of science and 90% gut instinct. Intel years ago said their primary concern was gross margin dollars, NOT gross margin percentage. I believe that is still their financial policy. It's one of the reason I still hold a bunch of Intel, I like companies that like to make real money, not work towards artificial goals. Just expanding on your comment. John