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Politics : Formerly About Advanced Micro Devices

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To: Road Walker who wrote (122608)	8/21/2000 2:31:01 PM
From: Joe NYC	Read Replies (1) of 1577033

John, Most folks on the AMD thread seem to think that no matter how many microprocessors AMD makes, they can sell them, if they just lower the price. That's not true. Retail demand is finite, there will only so many thousands of PC's sold to consumers in the 3rd and 4th quarters. This is partially true, AMD is at less than 20% of world supply, so even if their output doubles, there is a plenty of market market share left to gain. But AMD is not talking about doubling the output. If the statements about Q3 and Q4 are true and AMD sells 7 million and 9 million chips, the market share numbers will not change very much. 7 million is almost no change over Q1/Q2 and 9 million basically is a response to an increased seasonal demand. Another way to look at it, if AMD double their output, Intel would probably still be able to sell more processors, because the market is growing faster than 20%. AMD would just capture more of the growth. On the other hand, if Intel doubled their output, no amount of price cutting would help absorbing the additional chips. Joe

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