SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 231.94+0.1%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: tejek who wrote (48614)7/22/2001 10:04:18 PM
From: kash johalRead Replies (3) of 275872
 
ted,

re:"I don't care how very fixed cost/labor intensive an industry is, when you get into a mess like the one AMD is in the best approach is to shut down the bleeding as quickly as possible. You want to minimize losses and keep your cash intact for the time when the turnaround does come so you can once again pursue market share. Unfortunately, this is not Sanders style and he will push for option 2. That's why the market is selling off the shares. They expect a return to AMD's bleeding days."

Option 1 essentially means an exit out of CPU's.

Option 2 is ONLY way to go if they are serious about the CPU biz.

Its very HIGH risk and high REWARD.

Getting to 30% market ensures:

Good MB and infrastructure support.
Reasonable market share in several segments: desktop and notebook etc. If they only play one segment Intel can leverage other segments to drive AMD out of biz.

Grabbing marekt share has been AMDs strategy for a while (and rightly so).

Unfortunately they bet on a growing market and a $100 CPU price as viable.

Now they may have to recalibrate a business model with $50 CPU's(unless they can get MHZ crown - which doesnt seem likely until hammer).

They can get there in several ways to increase value and prices:

1. Bundling deals with MB/CPU/DRAM - will Piss Off lots of partners but a guys gotta make a living.
2. Integrating chipsets with CPU to increase value (buying NVIDIA or ATI may be required).
3. Selling direct to white box shops and cutting out middle men.

FYI, I just picked up a HP celeron box PLUS 15" monitor in a box for $599 from fry's.

Margins at low end are gonna SUCK for a while - Intel has margins from servers, business, mobiles etc to provide cover - AMD doesn't.

regards,

Kash
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News