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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 221.450.0%3:59 PM EST
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To: semiconeng who wrote (30188)3/4/2001 7:52:41 AM
From: Bill JacksonRead Replies (1) of 275872
 
Semi, Well, you may feel you are correct in your assessment of GTW strategy, however I do not agree with your assessment.
GTW failed the same way CPQ failed. Both did not adhere strictly to the Dell model.
The dell model is to do one thing to perfection. You see no dell stores that lose money on their own and also ruin the mail order business by 6-7% in most states. In todays environment 6-7% is a huge amount, it is fully equal to a wholesale tier....and dell does not have it.
In addition when you sell to the civilians that buy AMD then that 6-7% makes an even bigger difference as those people are the cheapest of all and readily switch for a few % difference. Some want the better performance of AMD and those clients are growing as we speak.
As for them firing the wrong person for the wrong reasons, well Intel has done that too.
One day GTW will realize this and sell products based on AMD parts as well as Intel parts.
Secondly you have supplied direct evidence that Intel applies coercion...."pissed off their supplier".
The FTC wants to know this kind of stuff, this means Intel makes threats to GTW and they responded, and this also means that dell is kept in line the same way.

Bill
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