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

To: Saturn V who wrote (79316)	4/15/1999 7:15:00 PM
From: philipah	Read Replies (1) \| Respond to of 186894

Thread - Would you trust a man named Swindle? FTC Commish isn't happy about recent settlement. cbs.marketwatch.com He wasn't at work the day the vote was taken. P

To: Saturn V who wrote (79316)	4/15/1999 7:30:00 PM
From: Process Boy	Respond to of 186894

Saturn V - <Kash, I believe that Intel's costs are even lower than your estimates.> I believe INTC CFO Andy Bryant said in the CC something to the effect that "cost reduction has become institutionalized around here, and [he doesn't] see it going away anytime soon." Bryant alluded to intel cost reduction efforts more than once. PB

To: Saturn V who wrote (79316)	4/15/1999 7:46:00 PM
From: kash johal	Respond to of 186894

Saturn, Lets not argue over the costs as that is an endless argument. My point was that The Celerys are probably at 50% GM for majority of the parts. Except for the 300/333/366Mhz loss leaders. And Intel manages volumes of the loss leaders depending how the overall business is going. However as majority of AMD parts move up the speed scales they have less room to do this. For example if the sweet spot this quarter of 433/466 gets trashed into the $80-100 range then Intel margins would also suffer. Frankly I doubt AMD can get there this quarter. In Q3 however AMD may well have caught up on the Mhz ramp for 0.25 with Intel. At that point Intel and AMD start transitioning to 0.18. If AMD executes and can ramp up enough 0.18 by Q4 then they can be quite profitable as their mix should be dramatically higher in the 500Mhz and plus range. I don't see the Celeron family transitioning to 0.18 till mid next year as they have to keep the 0.25 fabs full with material. So if AMD can ramp up majority of wafer starts as they have predicted predicted in Q4/Q1 to 0.18 then AMD clearly has an opportunity to do OK and generate ASPs in excess of $100. Regards, Kash J.