Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 250.12

+0.2%

10:30 AM EST

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To: peter_luc who wrote (4733)	8/12/2000 6:14:42 PM
From: Goutam	Read Replies (1) of 275872

Peter, > Chung, I am not convinced that these drastic price cuts were a good idea. The "prohibitive" high price of the P3 1000 was a clear offer of armistice by Intel. Both sides could have been living well with that situation. Now Intel has no other choice than to react to the new price war initiated by AMD - and it will react, see theregister.co.uk Besides, nobody knows how the situation will be after the P4 launch. AMD's recent price move could lead to eventual bitter revenge by Intel.> AMD has done this(Athlon price reductions on its own) before many times. This is not a price war. Actually, this is great news in many respects. These price cuts show that AMD is in a commanding position to dictate its own prices. AMD is using these price cuts as an effective tool to further its market share. The company is priming the consumer sweet spot to higher MHz that it can deliver in high volume accompanied by an equal Infrastructure support . To me, these price reductions are a clear and strong indication of how confident AMD is with Athlon binsplits, yields, Dresden ramp, and the infrastructure support. IMO based on the new prices, AMD is setting up the stage for Thunderbirds 1GHZ and above speed grades, and Durons below 1GHZ space by the year end. They are setting up for a phenomenal Q4'00. If a pricewar is imminent in the future, it's better for AMD to be proactive now with the price cuts. It allows AMD to increase its consumer market share, and to get a foot hold in the commercial sector. Increased market share will put AMD in a better shape than ever to weather any future price wars that are being predicted by the press. Goutama

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