Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Frank Byers who wrote (571)	7/2/1996 1:41:00 PM
From: Paul Engel	of 1586043

Frank - Very good points you make. Why doesn't, or why can't, AMD make headway in the brand recognition area? My guess is that they are hunkering down and praying that they can come up with chips competitive with Intel. With no profits to speak of, cash is being consumed by their development groups to design and make these chips. Three years of K5/K6 R & D are being written off the books - nothing more than the existing slow motion K5 chip will come from all this R & D. AMD now has to pump money into NEXGEN engineers so that hopefully they can come up with a workable chip. Think of the morale suffered by existing AMD engineers that worked on the K5/K6 designs. AMD must be undergoing interdivisional turmoil that it must cope with, distracting it from making progress in other areas. This all comes down to no money for extensive and effective marketing campaigns. Marketing is also hampered by AMD not being able to supply CPU chips that are speed competitive with Intel's. Essentially, AMD possesses no "lever" with which to move the market. Paul

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