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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 203.14-0.8%Jan 9 9:30 AM EST

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To: Paul Engel who wrote (15437)10/22/2000 2:07:35 AM
From: dougSF30Read Replies (2) of 275872
 
Paul, you fail to consider a simple possibility re: the X-box deal:

Could it be that the *very same deal* (same profit/loss margin per chip) could have been good for AMD, yet bad for Intel?

How could this be? Think about it. For both AMD and Intel, the CPU-profit will be minimal. Tiny. Yet, if the deal had gone to AMD, the PR impact would've been huge. Microsoft going with an AMD CPU instead of Intel, the big guy? Shocking. That the deal went to Intel isn't big PR, it merely deprived AMD of a big win.

So, AMD wouldn't be making squat off the deal, had they won it, but that wouldn't have been the point. The PR would've made it worthwhile. Intel won't be making squat. They get no big PR win, but they did deprive AMD of one, at the cost of giving Microsoft millions of chips at bargain-basement prices.

Hope that clears things up for you.

Doug
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