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

To: Scumbria who wrote (78443)	4/11/1999 2:20:00 PM
From: Diamond Jim	Read Replies (1) \| Respond to of 186894

"If anything, this will push them towards alternate suppliers. Compaq and most other OEMs are not happy about the fact that Intel gets most of the profit out of each box. That is one reason why they are always looking for lower cost CPUs." That is almost comical. Dell has gone through the roof over the last two years while Intel has basically reduced manufacturing costs to keep profit margins up. It's about time that the boxmaker feel the pinch as well. CPQ's lack of a Dell business model is hurting them and they have already tried an alternate OEM source, let CPQ buy AMD.

To: Scumbria who wrote (78443)	4/11/1999 3:36:00 PM
From: semi_infinite	Respond to of 186894

Well, they better get use to the fact that all profits will eventually migrate to Intel. So do others like IBM, LU, COMS, SIII, TDFX, NINE, CUBE, ESST etc.....etc....

To: Scumbria who wrote (78443)	4/11/1999 4:57:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

SCUM bria - Re: " Compaq and most other OEMs are not happy about the fact that Intel gets most of the profit out of each box. That is one reason why they are always looking for lower cost CPUs." Hard to fault Compaq, etc. I'm sure they love CPU suppliers who make NO PROFIT on their devices - and generally make a LOSS ! Does AMD come to mind? Paul

To: Scumbria who wrote (78443)	4/11/1999 11:43:00 PM
From: L. Adam Latham	Read Replies (3) \| Respond to of 186894

Scumbria: Re: Compaq specifically said that their shortfall was due to their commercial PC business, which is 100% Intel based. The Wall Street Journal seems to disagree with your conclusions, and implies that part of Compaq's problems is with declining sales of non-Intel (I assume) based minicomputers: interactive.wsj.com "The profit woes suggest sales of big computers acquired through the acquisitions of Digital Equipment and Tandem Computers continue to fall, analysts say. Sales of the high-priced machines, which carry gross margins at least double that of PCs, aren't salvaging the PC margins drop. Compaq's product gross margin is expected to be about 22.5% for the quarter, similar to Dell and Gateway Inc., which don't offer minicomputers." Adam