Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Fred Fahmy who wrote (64839)	7/12/1999 9:58:00 AM
From: Kevin K. Spurway	Read Replies (3) of 1580032

Fred, Does your company own a billion dollar fab? If it doesn't, maybe you can try to understand why AMD needed to initially discount at 25%. AMD needed to RAPIDLY build market share so that its very expensive, rapidly depreciating fab wasn't just sitting there idling. AMD couldn't afford the nice slow, gradual ramp that your company has accomplished over 6 years. There was at least some financial imperative for their decisions. Of course, this is moot because the 25% discount policy no longer exists. Re: "Not a very good strategy and the results speak for themselves." I think the verdict is out and will remain so for about another year. Ever heard of Pyrrhus? Kevin

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