Intel Corp (INTC)

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Re: To the outside world, it looks like a panic mode, when Intel dumps product at VIA like prices, but it is a strategy.

Wrong, Joe. The outside world isn't keeping track of the Celeron 310 parts on Newegg.com. They will be looking at the market share numbers, Intel's earnings and margins numbers, and the outlook for the next year. They are panicked because Intel has been losing share, and Intel's Q1 earnings were very low, and their margin forecast was quite a bit lower than before. They take it to mean that things can only get worse, whereas the reality is that Intel's a forward looking company that has already taken the necessary corrections to make things going forward more smoother. Selling off excess inventory at low prices is the right thing to do, and they even guided the Street towards the result of this. They announced that the intention was to empty out all the excess so that Core 2 can ramp quickly in July.

They seem to be doing everything they said they would do, and then there are people like you who call this panicking. In all fairness, maybe you truly believe that Intel is panicked, and you really are unaware about what it takes to get back on top in their current condition. But for the people who have been watching Intel closely, it is evident that they have been doing exactly what they need to do, and they also have the future product line to win back the market, including the influence necessary to demand margins for the leadership they deliver. But when you're behind, you cannot demand leadership. You need to offer it at a price where the consumer cannot say no, and let them experience for themselves the value that the product can deliver. I think Intel is pricing their products to do this, and I think they will succeed. If Wall Street does not understand the strategy, they will at least be aware of the results.