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Politics : Formerly About Advanced Micro Devices

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To: Daniel Schuh who wrote (126320)	10/17/2000 2:48:02 PM
From: Road Walker	Read Replies (1) of 1580445

Daniel, re: "Again, John, what do you think AMD should do with their ghz parts? Downbin them to 800 mhz to sell against what Intel produces in volume? Or price them to sell in volume at 1ghz? Or just cut back production?" Price them where the market has been, with traditional gross margins. Price cutting will give you an incremental increase in sales, but it won't make up for the lost gross margin. If sales decline below capacity, cut back production, lay people off. That's what companies do, all the time, Intel included. Do you think Intel has always produced at 100% of capacity? I'm done on this thread for today, I can't keep up, and have other things I need to do. John

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