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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (37066)	11/20/1998 3:44:00 PM
From: Timothy Liu	Read Replies (2) \| Respond to of 132070

Jozef, Some correction for you. The 1.6 Billion (soon to be >1.9B this quarter according to consensus) earned after capital spending (fabs et). Why cash on hand decrease? Intel buy back stock over the last year. There are pros and cons as other people have argued so I am not going to do that with you here. But you can not deny that the money is well spent compare to sitting inside a bank. Intel stock has appreciated considerably. The other point is, commodity or not is all in the eye of the buyers. If buyers keep associate value with Intel brand name they are going to pay higher price for it. Someone like Japanese automobiles, some like BMW and happily paying a price for them. While considering pricing pressure on the low end, you have to consider opportunity for Intel. Most significant is entering the server space. Intel is estimated to sell 1-2 Million Xeons a quarter next year. At 1500-3000$ a pop that is a > 2B revenue a quarter in addition to current desktop revenues. Profit margins are huge (>80% is my guess). That is nice above the line growth over their current revenue of 6-7B and increase margin as well. Tim JMHO of course.

To: Joe NYC who wrote (37066)	11/20/1998 7:17:00 PM
From: Paul Engel	Respond to of 132070

Joe - Re: " Like Merced and Xeon 450? How about Firewire, PCI at 66MHz, 64 bit and various chipsets? How about USB? How many HX chipsets were shipped without the advertised functionality, and how many revisions after the scheduled launch did it take to get it right? How much more of the 1.6 billion per quarter would Intel have to spend to REALLY be on schedule? " Yeah - just like that ! What about Pentium II, PII 350 MHz, 400 MHz and 450 MHz, Xeon 400 MHz, 440 BX, 440 LX, 450 NX, Mendocino, Pentium MMX, " Paul