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

To: Jeff Fox who wrote (65990)	10/7/1998 8:29:00 PM
From: gnuman	Read Replies (3) \| Respond to of 186894

Jeff Fox, someone was kind enough to send me this IDC bulletin on servers. <FRAMINGHAM, Mass., Oct. 2 /PRNewswire/ -- Counter to what is typically a strong quarter, a recent IDC bulletin reveals market and vendor shipment data showing sluggish growth in the 2Q98 worldwide PC server market. Shipments on a worldwide basis dropped to just over 487,800, representing negative 1% sequential growth.> Full text at prnewswire.com I'd appreciate it if you'd look at the bulletin, (only one page), and answer a few questions. What does the term "PC Server" mean? Does it include devices like Alpha, Sparc, Mot, RISC as well as X86 processors? I looked at Dell's Power Edge 2200 and 2300, (their highest volume servers), and these are PII based, selling for a couple thousand dollars. Compaq, with 27.7% share has PII, PPro, Alpha and Xeon servers in their extensive line up. (Lot's of PII models). I also looked at a model of the HP LH and the IBM Netfinity and these particular models were both PPro selling for $400-$500K. With an indicated annual rate of 2 million PC servers W/W, do you still think Intel will sell 2 million Xeon's per year? Hate to bother you with these questions, but I really am interested in what all this means to Intel. TIA Gene

To: Jeff Fox who wrote (65990)	10/7/1998 8:59:00 PM
From: nihil	Respond to of 186894

RE: A few million servers Some servers have 2 - 4 chips, a few others (Sun and IBM) have a few dozen to a few thousand, but only an occasional Intel product (like at Los Alamos (9,200) has that many. Implications for Intel: A few million at a few thousand equals a few billion. 500,000 x $2,500 = $1,250,000,000 (not all profit, but try 80 % gross margin) or about 25 per cent of Intel esrnings for '98. If Intel increases Xeon share, and the market grows, it soon adds up into real money. If SuperSPARC and K7 are further delayed and Xeon is fixed -- things look even better.