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

To: Jeff Fox who wrote (72892)	2/4/1999 5:26:00 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 186894

Jeff, RE:"My belief is that Intel has chosen to peg the Celeron pricing at 172% of its cost (58% margin), and let the price fall in concert with cost reductions" --- Are you serious? You think that all Intel products have a 58% margin? I suspect the Celeron is much like a lost leader, with the Pentium II and Xeon making up the difference. With the high margin items Intel has the luxury of doing that. AMD has no high margin items. They could have if they hadn't had the process problem. Intel has clearly used the Celeron to squash AMD and attempt to gain back lost market share even risking the cannibalization of the high price chips. Any other argument would be an outright fiction. Jim