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

To: Paul Engel who wrote (65917)	10/7/1998 12:14:00 PM
From: gnuman	Read Replies (3) \| Respond to of 186894

Paul Engel re: AMD earnings Whether AMD earns a minuscule $1M or projected Q4 $15M should be of little import to Intel investors. What is important is AMD's impact on market share, ASP's and margins. It appears to me they will gain at least 20% market share of PC's going forward. And I think this will happen at ever decreasing ASP's for both companies. We're seeing increased AMD penetration in major accounts, (both desk-top and portables), and a number of sources foresee their penetration into the business segment. If I'm correct, Intel will have a difficult time maintaining $15 Billion CPU revenues in the PC segment. I think this is one reason Intel is targeting commodity businesses like set-tops, hand held's, appliances, etc., for revenue growth. And this is a low price low margin business. Much has been made of Xeon and it's high price and margins. But I'm getting the sense that PII and it's coming variants will continue to outsell Xeon in the workstation/server market by at least an order of magnitude. And since PII is under continuos price pressure, I wonder what the net impact will be. And I wonder if K6-3 and K7 won't also find applications in the server market. And how big is the server market anyway? For example, is there one server sold per 100 PC's sold? How many average CPU's per server? (My guess is less than two. Still trying to get a handle on this market). ;-) And what is Intel's share, now and looking forward? You can continue to deride AMD's performance, ( even while it keeps improving), but it add's little to our knowledge of where Intel is going. Now if you could provide market data. Only my opinions, of course.