Replies to post #28892 on Intel Corp (INTC)

[KeithDust2000]

Snow, 1. Clear out old inventory so Intel's doesn't have to write it off.
2. Make room for higher priced and higher performing new processors

My thinking is that write-offs would be a much better, quicker, less painful way to deal with the problem. The thing is that the choice INTEL has made should have long-lasting negative consequences, especially if done in a PC market that looks weak.

3. Provide Intel with an opportunity to penetrate new markets in evolving economies (Africa, South America, etc.)

Can you give a specific example? You mean something like sub-$50 Celerons being "cheap enough"?

[jhalada]

Snowrider,

1. Clear out old inventory so Intel's doesn't have to write it off.

That is clearly not the intension. Bryant said during the CC that Intel is building a bubble of inventories for upcoming product launches, and inteds to offload on the Third world. So it is not inventory clearance, but a market share grab at unprecedented prices, such as $37.99 Boxed units.

2. Make room for higher priced and higher performing new processors

Unabated production of parts that are already selling at VIA like prices may end up crowding out, or canibalize the higher performing new processors.

Joe