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Politics : Formerly About Advanced Micro Devices
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To: Joe Fang who wrote (3241)11/25/1996 7:46:00 PM
From: Robert Walter   of 1581487
 
Joe:

RE"competitive pricing on the K6 chips decreases profit margin...is that good for AMD ?".

Joe if AMD prices the chip competitively then they are more likely to sell a lot more chips which in turn should mean higher profits. This would build good will the computer manufacturers for future AMD products. Just look what Cyrix did with their pricing on the 6x86 chips when they were first released. Cyrix tried to ask a premium price and ended up selling very few processors. It was not until they got aggressive in their pricing did they start moving chips in volume and even that may have been to late.

As for AMD marketing I was making a general statement. Good marketing of a competitive product usually increases a companies market share.
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