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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 214.18-0.5%3:59 PM EST
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To: andreas_wonisch who wrote (48493)7/20/2001 1:53:13 PM
From: heatsinker2Read Replies (1) of 275872
 
Andreas, I think you are being blinded by the Intc propaganda machine. Sure the continuing price war will hurt AMD, but what about the damage being done by Intel to itself? If they price a 1.8 P4 at $200, while a 2.2 P4 costs $600, do you really think that people will pay the extra money for a 2.2 P4 system? I think Intel will end up selling all low end P4's.

A similar thing applies for the P3 Toolie. Yes the price is very high, so the assumption is that people will buy P4's. Some will, but they will buy the slowest P4 which has a much lower profit margin. Much more ominously for Intel, many will opt for a 1Ghz Celeron, a sub $100 chip. So Intel will hurt itself a lot with this strategy.

The Intel propaganda machine is telling us that everything is fine. They have the audacity to state that their gross margin has slipped from 50% to 49%! Get real, prices have crashed, their chips are very expensive to make, and the gross margin has slipped just 1%. That's a joke. They are cooking the books. They can do this for a while, but not forever.

I think AMD will survive the price war. If they can make the .13 and SOI transition reasonably well, they will be in great shape in 2002.
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