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


To: Steve Porter who wrote (65126)9/20/1998 2:21:00 AM
From: Yousef  Respond to of 186894
 
Steve,

Re: "Does Intel get a "volume" discount, considering they have historically
supported single handedly more than one of the semi-equip makers ;-)"

Yes, Intel does get volume discounts from the equipment manufacturers ... Just
like Hertz gets better car prices than you and I. BTW, these price discounts
for Intel help to give them lower manufacturing costs as compared to AMD
and NSM.

Make It So,
Yousef




To: Steve Porter who wrote (65126)9/20/1998 4:27:00 PM
From: Paul Engel  Respond to of 186894
 
Steve - Re: " Does Intel get a "volume" discount, considering they have historically supported single handedly more than one of the semi-equip makers..."

Intel strives to get the best possible pricing for their purchases based on their volumes and their repeat business as a perennial customer. Intel's purchasing managers can be as aggressive as their sales managers.

Most suppliers prefer to deal with a company they know will be buying in the future and make appropriate price concessions.

What most people do not recognize, however, is Intel's CONTRIBUTION to various equipment suppliers.

First, Intel will evaluate equipment from new suppliers, giving them a chance at the "big time" despite their previous inexperience.

Second, Intel runs equipment through extensive and exhaustive tests, often debugging equipment for the MAKER of that equipment. Improvements and modifications are frequently suggested by Intel engineers which, when incorporated by the manufacturer, result and a much improved, more reliable piece of production equipment.

This FEEDBACK is invaluable to equipment suppliers and becomes "added consideration" in future price negotiations.

Paul