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To: JRI who wrote (78776)4/13/1999 4:43:00 PM
From: Ibexx  Respond to of 186894
 
john,

Intel management rarely forecast higher margin (in terms of percentage) due to flexibility in product mix and other factors, but the absolute numbers (gross margin) may be up.

Ibexx



To: JRI who wrote (78776)4/13/1999 4:46:00 PM
From: Tenchusatsu  Read Replies (1) | Respond to of 186894
 
<Did I understand right that 59% was the gross margin, and it is expected to be flat for the second quarter?? Isn't that on the high-end of the expected range, pointed to health in the PIII market (high-end) sales...(and not an overreliance on Celeron to make the number(s)>

The weird thing is that Intel expects gross margin for the whole year of 1999 to be 57%. That means if 59% is going to be the margin for the first two quarters, we can expect the margin to go down to 55% or 56% in the next two quarters.

I guess Intel is getting ready for lower margin times. It won't matter, though, if Intel can make up for it with even higher volume shipments.

Tenchusatsu