Intel Corp (INTC)

[drjohn]

Re cisco and intel margins. I think there is a reason for
this, the massive expansion of networking and the internet has
not really entered its second decade, many IT managers do not
fell comfortable designing and maintaining there networks when
they buy from cisco they get there hands held, so basically
Cisco is both a hardware and service company. Intel is more
of a pure hardware vendor this will change slightly as intel
works its way up to former mainframe business. Pc's have been
around for so long most IT managers have no problem managing them themselves.
This doesn’t mean I think CISCO is overvalued, I think there margins will fall as
IT managers become better at putting networks together by themselves and when the
Next expansion gets underway more competition will spring up for cisco versus intel.