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Politics : Formerly About Advanced Micro Devices
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To: Frank Byers who wrote (581)7/2/1996 3:49:00 PM
From: mz001   of 1586277
 
Paul and Frank:

I know it is easy right now to bad mouth AMD while they are done but try to keep things in perspective. First off: THERE IS NO MARKET IN THE US FOR 486's (even the 133 MHz variety). Granted that a 486 133MHz processor is more than enough power for the majority of applications people use their computers for. People do not buy microprocessors, they buy computers from vendors like Compaq, Gateway 2000, Dell, etc.. and these vendors will only buy Pentiums for the computers they sell. Last year Compaq was willing and ready to ship their high-end computers with K5's but unfortunate delays prevented that from happening. If AMD wants to succeed in the microprocessor market they must go head-to-head with Intel, even if it means their stock will be hit. As far as your Ford/Porsche analogy goes, it is flawed. Companies like HP, IBM, Digital and others build processors which are much, much faster than Intel's Pentium Pro (They are like Porsche). The problem is that there is a small market for them (primarily engineering firms and universities). Intel mass produces x86 instruction set processors for the masses to use (Intel would be like the Ford Co.). AMD needs to be in this market if they expect to make any profits (that is why there is FAB 25 in Austin and FAB 30 in Dresden), high volume production of high-end microprocessors. FAB 25 cannot be dedicated to manufacturing 486's when they will just end up on keychains and sold in the gift shop (granted there is a market emerging now in southeast asia for low end computers). It is a shame if you had to lose money on your investments but that is the way it goes. Be patient, AMD has not given up and will begin to deliver and marketable product.
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