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

To: Mary Cluney who wrote (76744)	3/18/1999 5:04:00 PM
From: Gerald Walls	Respond to of 186894

Gelsinger said the 500 and 550MHz versions would be followed in the second half of the year by 600 and 667MHz chips when it moves to a more advanced production process. Of course, the AMD fans will refer to the later chip as the Intel Pentium III-666.

To: Mary Cluney who wrote (76744)	3/18/1999 8:13:00 PM
From: Jeff Fox	Read Replies (2) \| Respond to of 186894

Mary - That was a GREAT NEWS article!! - Thanks, excerpts. Some comment on the article follows... Thanks for this post - the best Gelsinger interview yet. Finally a reporter that lets the truth be said without smoke screening it with cheap swipes, snide remarks, and fabricated innuendo. Gelsinger lays out what Intel has been up to this last year. In summary, a lot! From the article - credited: http://dailynews.yahoo.com/headlines/tc/story.html?s=v/nm/19... Thursday March 18 3:09 PM ET Chips To Help Maintain Intel Profit By Neal Boudette HANOVER, Germany (Reuters) "The [server market] profits here are good," Gelsinger said. "That is why we have committed 50 percent of our engineering to the workstation and server market... This is true! Intel has been devoting 50% of its processor development project resources to server development for over the last three years. The payoff is near, folks, as evidenced by the lightning speed of Xeon adoption clear across the server industry. Intel will almost immediately vault to first place in all but the most specialize of categories. Of course beginning in 2000 IA-64 will come online to boost even that to "Intel" class market shares. ... even though it is less than 20 percent of our revenue stream now." Granted this could mean "0%" but I rather bet that Pat intended a straight answer indicating that it is perhaps more than 15% of today's processor revenue stream. The message is that the Kurlaks, et. al., have totally ignored a Intel business that is a huge chunk of Intel revenue now and is staged to grow rapidly over the next five years! But by just how much??? At the CeBIT news conference, Gelsinger said Intel expected worldwide e-commerce revenues to jump from $41 billion in 1998 to $623 billion in 2002. In Europe, the e-commerce market should reach $223 billion by 2002, up from only $6 billion last year, Intel said. I'll do the math for you - that is a CAG of 47% [worldwide) and 63% (Europe). Both these are boom time numbers of tremendous opportunity. "You will need a lot of servers to support that," Gelsinger said. Classic Intel understatement. But Pat makes sure the message isn't missed. The next quote is the news folks -> "Intel server business will track Internet commerce growth." Now let assume for argument sake that the price/performance improves at a equal rate (a very conservative assumption). This means that every server existing today must be replaced on average every year. Who knows what today's server base is? This should give a pretty good indication of the growth that Intel is targeting... Now Gelsinger returns to trying to tame the press over the core desktop and mobile businesses: "No, no, a thousand times no. We are not walking away from [the desktop PC segment] market place. We have lost share but we have got our products and costs in place to participate," he said. Unfortunately he missed an opportunity to hammer in that Intel cost are there to be very profitable at market prices. Gelsinger said the 500 and 550MHz versions would be followed in the second half of the year by 600 and 667MHz chips when it moves to a more advanced production process ... The new 0.18 micron process will enable Intel to make many more chips for roughly the same cost as its current 0.25 micron process. Faster, cheaper, better Its an old song, but the same song, the main one at which Intel excels. Now Pat address the "how low can it go" question with aggressive commitment: If low-end PC prices slide to $300 or $200, [idea of giving away free entry-level personal computers] could make sense, he added. "Intel is going to support this idea. It will mean more people are using PCs." That means Intel will be there and be best and be profitable all the way to the floor. This talk should scare the profits right out of even beleaguered NSM... Finally on Ce-Bit: Running through March 24, CeBIT has drawn more than 7,000 exhibitors and was expected to bring more than 700,000 visitors to Hanover in northern Germany. WOW - That is the population of Hanover itself, or say for us U.S. bound folks, more that the population of Pittsburgh! - - - Big nerd show! Jeff