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

To: Fred Fahmy who wrote (74760)	2/27/1999 4:34:00 PM
From: James R. Barrett	Read Replies (5) \| Respond to of 186894

Fred, everything you said is true but the fact remains that INTC's gross margins have fallen dramatically in the past three years. Why? Answer: AMD and Cyrix INTC has lost its status as a monopoly. MSFT is the only monopoly left. INTC is a great company but do you think they will ever be able to equal their gross margins of the past when AMD was not a serious competitor? Do you remember when the first Pentium hit the market and the OEM price was $1,000 each in lots of 1,000. Why is the P-III priced at only $500? Competition maybe? What do you think the price would be if AMD didn't exist? I would guess around $1,200. Remember, it ain't sales that count, it's gross margins. Jim