CONTACTS 

SUBJECTS
Intel, Earnings
Intel Forecasts Lower Earnings
Bad Management Reduces Earnings at Intel Causing Delayed Product Ship
Killer Application Needed, Ellison, Larry
Market Appeal of Computers
Earnings Stock Price Drop Builds Demand Better Management

1008 -    ..
1009 - Summary/Objective
1010 -
101001 - Follow up ref SDS 31 0000, ref SDS 29 0000.
101002 -
101003 - CNET News.com reported today, ref OF 7 0001, Intel is saying that
101004 - sluggish sales in Europe will cause it to suffer reduced earnings for
101005 - the third quarter. Some analysts believe that the root of the problem
101006 - could be much deeper. ref OF 7 AX8G
101007 -
101008 - Intel warned yesterday sales will grow by only 3 to 5 percent over the
101009 - second quarter, lower than the 12 percent seasonal jump many analysts
101010 - had expected. ref OF 7 UI5N
101011 -
101012 -    On 000822 Intel's CEO reported that product delays were caused by
101013 -    bad management, not bad luck. ref SDS 31 019R
101014 -
101015 -      [On 001121 letter explains reduced earnings and stock prices show
101016 -      need for better management that KM can accomplish. ref SDS 34
101017 -      U46K
101018 -
101019 -      [On 001207 Intel forecasts lower earnings for 4th quarter due to
101020 -      cancellations of orders; broader stock prices fall, because too
101021 -      many people are having too many problems. ref SDS 35 0001
101022 -
101023 - "We've been hearing from Taiwan that there has been a slowdown in
101024 - motherboard shipments for like a month now," said Linley Gwennap, an
101025 - analyst with The Linley Group. "I have a hard time believing it's all
101026 - a problem with Europe...If Intel looks around, they're probably going
101027 - to find some softness other places." ref OF 7 SX8K
101028 -
101029 - "For major accounts, we believe that markets in the U.S. and Europe
101030 - are saturated. There is a PC for every person who needs one," Smulders
101031 - said. "We think that is having a big effect." ref OF 7 0Z4J
101032 -
101033 - The PC industry has escaped predictions of doom for years, often saved
101034 - by some new or unforeseen factors. ref OF 7 3M4I
101035 -
101036 - In the mid-'90s, the growth of the Internet led to resurgent sales. In
101037 - 1997, PCs sales soared as prices dropped below the $1,000 barrier.
101038 - Last year, $400 rebates from Internet service providers spurred
101039 - unusually strong sales early in the year. ref OF 7 6M4M
101040 -
101041 -    This aligns with analysis on 951022 that PC sales have been
101042 -    sustained by market psychology. The Internet provided one more
101043 -    round at the bar of hyped false promises. ref SDS 4 V4P2
101044 -
101045 -    [On 000928 Intel delays shipping Pentium 4 processors, PC makers
101046 -    frustrated because they will miss Christmas season. ref SDS 32 0001
101047 -
101048 -    [On 000929 Intel cancels Timna processor due to design defects and
101049 -    market conditions. ref SDS 33 0001
101050 -
101051 -    In mid-October Intel stock dropped below $40 per share, having
101052 -    lost 50% of value from beginning of the year.
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