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

To: lkj who wrote (69203)	11/29/1998 11:37:00 PM
From: Tony Viola	Read Replies (3) \| Respond to of 186894

Khan, in reading your replies to me and Mary, it sounds to me like you mostly had your mind made up to sell Intel before you dropped in here. Going over to the AMD thread seems to have solidified your decision. One thing I failed to mention, which should be obvious, however, is that some posters to some of these threads have a religious-like zeal or ardor for their chosen companies. You do have to take them with a large grain of salt, me probably included. As far as the K7 is concerned, if it does come out as a threat to Intel at the "high end" it would be at the high end of the PC space, AKA "performance PCs." I don't think it will make a dent, even a small one, in Intel's server business. AMD has a lot of things to prove in the areas of financial stability, consistently high yields over time, infrastructure support and RAS before any major company will build a server around their chip. Building confidence in these areas will take years. Tony

To: lkj who wrote (69203)	11/30/1998 2:11:00 AM
From: Mike Wong	Read Replies (2) \| Respond to of 186894

Your concern for Intel is unjustified. 1. It's a heck of a lot easier to build last year's chip to compete with Intel low end than to compete at the leading edge of technology. 2. AMD is unprofitable, and will continue to be unprofitable. Let's take a simple example: Assume there are 2 companies building a widget that have small variable costs relative to fixed costs. Company A sells 1000 widgets, and has a $1000 budget for fixed costs-- R&D, tooling and marketing. Company B sells 100 widgets, and has the same $1000 fixed costs. Company A's fixed costs are $1 per widget, whereas Company B's fixed costs are $10 per widget. Even if Company B is twice as efficient as Company A, its fixed cost is still $5 per widget. Good luck!!!