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July 25, 1990

INTEL MAY NOT BE ABLE TO MAINTAIN CURRENT GROSS MARGINS

By CBR Staff Writer

Maintaining Intel Corp’s current gross margins at the level of a little over 50% is unsustainable in the near future due to heavier sales of lower-margin products, according to the company’s chiefexecutive Andrew Grove: Reuters reports that Grove expects margins in the 45% to 48% range as sales of high-margin microprocessors become less dominant in its sales mix; the 80386SX is still on allocation as Intel strives to meet the demand.

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