Albert, Re: "share price is an ultimate measure. AMD's share price would not be much if they would show earnings but would loose all of the market share."
Well, that's the big problem with AMD, isn't it? They've shown that they can make large increases in market share, now that they have a product that is competitive with Intel on all fronts. And, one can only assume that if they wanted, they could sacrifice market share to improve margins to maintain themselves as a profitable company. The only problem is that AMD cannot have their cake and eat it, too. Margins come at the cost of market share, and market share comes at the cost of margins. They can only go so far in price before PC manufacturers find that the CPU is no longer the limiting factor in reducing BOM costs for a PC. Meanwhile, Intel's CPUs, with their brand name recognition among consumers, as well as the "high megahertz", will become the obvious choice. That's why IBM, Tiny, MicronPC, and soon others will be abandoning AMD to streamline their product line to the supplier that can guaranty the high volumes and reliable shipments... Intel.
wanna_bmw |
