Hi Rand:
Nothing expands market share faster than word of mouth of the satisfied customer!
This growing base of customer satisfaction has been reinforced by awards such as the 1999 technical excellence award from PC magazine and is,in marketing terms, only in its trendsetting stage, on the bell curve . Meanwhile production has evolved from 500 to 750 Mhz almost seamlessly, no mean feat for a new architecture, particularly when compared with production problems experienced during the evolution of INTC's existing architecture, which might indicate, in market terms, that PWeeIII's are in their declining stages of development!
Although too early to assess with unerring accuracy, it appears that an increment of 1 million Athlons results in close to $1.00 per AMD share. That is to say that if AMD were to ship 1.5 million Athlons in 1999, an additional $1.50 could be added to share value, all other things equal, from negative $1.10 in Q2 to positive $0.40 in Q4...
Should this relationship between incremental Athlons and eps hold true through Y2000 (I stress, it's an exceedingly premature assumption at this time) and should Salomon Smith Barney be accurate in their production number of 12.5 million Athlons in Y2000, obviously AMD eps skyrockets and share price stands to be enhanced by no small amount, assuming most of the 12.5 Athlons are shipped... |
