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To: Jimbo Cobb who wrote (54064)	3/19/1999 10:54:00 AM
From: Kenya AA	Read Replies (2) \| Respond to of 97611

Jimbo: **OT** What's up with DELL???? VOLUME is HUGE and to the downside! K

To: Jimbo Cobb who wrote (54064)	3/19/1999 10:57:00 AM
From: Mao II	Respond to of 97611

Jimbo & thread: look at e-commerce numbers in this story. Simply amazing, with obvious KompaK implications, among other things.M2 dailynews.yahoo.com Is your business online yet? Find a web address! Friday March 19 2:32 AM ET Chips To Help Maintain Intel Profit By Neal Boudette HANOVER, Germany (Reuters) - Intel Corp. (Nasdaq:INTC - news) Thursday gave visitors to the world's largest trade show a glimpse of the high-powered chips it is relying on to sustain the company's profit as semiconductor prices slide. At a CeBIT technology trade fair news conference, the computer-chip maker demonstrated a Pentium processor running at about 800 megahertz -- 60 percent faster than the new Pentium III Xeon chip it unveiled the day before. The demonstration chip ''is like a race car that you build to go as fast as possible even if it's only going to be on the test track,'' Pat Gelsinger, general manager of Intel's desktop products group told Reuters. ''It's not a product we are going to sell tomorrow but it shows where we are going,'' Gelsinger said. Intel needs to get to higher speeds quickly because the rapid declines in chip pricing show no sign of easing even though some key competitors struggle to maintain profitability. The 500MHz Pentium III Xeon chip, designed to power workstations and servers, has list prices of $931 to $3,692 -- giving Intel a much fatter profit margin than the $200 Pentium II processors now used in $1,500 home PCs. ''The profits here are good,'' Gelsinger said. ''That is why we have committed 50 percent of our engineering to the workstation and server market even though it is less than 20 percent of our revenue stream now.'' But Intel expects revenue from server chips to ''go up significantly'' in view of the increasing demand for powerful computers that can provide data over the Internet and control an expected explosion in electronic commerce. 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. ''You will need a lot of servers to support that,'' Gelsinger said. Despite the slimmer margins and stiffer competition in the desktop PC segment, Intel is not about to abandon that business, he said. ''No, no, a thousand times no. We are not walking away from this market place. We have lost share but we have got our products and costs in place to participate,'' he said. Rival Advanced Micro Devices Inc. has taken considerable share from Intel in the market for $1,000 PCs. However, AMD recently said it would suffer a ''significant'' loss in the first quarter due to manufacturing problems. National Semiconductor Corp. (NYSE:NSM - news) has also dipped in and out of the red. Intel, which said 1998 sales were basically flat due to falling chip prices, had been expected to resume growth this year with the help of new high priced Pentium III Xeon chips. 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. Intel also expects to introduce a whole new generation of high-end chips, code-named Merced, in 2000. Also at the news conference, Gelsinger said he favors the idea of giving away free entry-level personal computers to promote wider use, but added that prices must fall below well $500 to make such a move viable. However, with the very cheapest PCs available for just less than $500, Gelsinger has doubts that these offers can work right now. ''At $500, you can experiment with this economic model,'' he said. ''But it's very preliminary. Nobody has shown they can make money doing this.'' If low-end PC prices slide to $300 or $200, such offers could make sense, he added. ''Intel is going to support this idea. It will mean more people are using PCs.'' 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.

To: Jimbo Cobb who wrote (54064)	3/19/1999 12:52:00 PM
From: Kenya AA	Respond to of 97611

Jimbo: *OT* Intel (INTC:Nasdaq) is expected to hit harder on the sub-$1,000 personal computer market front Monday with the launch of a faster Celeron chip, according to a story on Computer Reseller News' Web site, citing industry sources. The new 433MHz Celeron processor will follow January's debut of 400MHz and 366MHz Celerons. Systems with the new chip would be available beginning Sunday, the article said. The chip giant declined to comment, the article said. Intel was up 1 3/16 to 123.