Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Richard Habib who wrote (22683)	1/20/1999 5:31:00 PM
From: Andrew Danielson	Read Replies (3) \| Respond to of 213173

OT: Internet stocks: Orderly implosion? Is anyone else impressed with the relative orderliness with which the Internet stocks seem to be deflating? Since last Monday, January 11th, the indexes are mixed as following: Dow: -2.5% Nasdaq: +1.0% S&P: -.5% Meanwhile, the internet stocks plummeted: Yahoo: -31% Amazon: -38% Ubid: -35% Ebay: -27% I worried that when the bubble finally burst that it might take the market (and AAPL) along with it. The early returns, thankfully, seem to indicate otherwise. . . Andrew

To: Richard Habib who wrote (22683)	1/21/1999 9:52:00 AM
From: BillHoo	Read Replies (1) \| Respond to of 213173

<<These machines use Xeon chips and the high margins offset the lower margins of the Celeron line leaving Intel with essentially flat to slightly rising margins last I looked.>> That sounds like a good strategy. However, it was only a last ditch reaction by Intel to combat the cheaper chips by their competitors. Intel is still being hurt by lower-end machines, because it wasn't until recently that their 5-year plan incorporated them. A year ago, they saw the future as high-end machines with faster more powerful chips. They had to strip down the Celeron to fit the low-cost PC criteria. They did this reluctantly because they spent a whole lotta dough R&Ding high-end chips (Pentium II). Ultimately, what I am saying is Intel would rather sell high-end chips because they make less money on the low-end. Box makers are moving more low-end machines and looking to AMD and Cyrix for supply. Intel is not happy. They'd rather sell Xeons. They are going to want to quash the cheap box makers. To do this, they dropped prices with the Celeron... and it's ultimately eating into their margin. -Bill_H