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Technology Stocks : PC Sector Round Table -- Ignore unavailable to you. Want to Upgrade?

To: Pierre-X who wrote (821)	9/9/1998 8:00:00 AM
From: Frodo Baxter	Read Replies (1) \| Respond to of 2025

Mendicino have a lower ASP than the P/II, therefore margins would appear to be lower. However, recall that the purchased components of the P/II (the L2 cache) is mainly responsible for Intel's declining gross margin. Consider that the marginal cost of producing an extra Mendicino is nearly zero and that most of that revenue drops straight to the bottom line. With the P/II, this wasn't the case. Intel should do okay if the demand is there. I don't think it is.