Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 236.73

-6.1%

Jan 30 9:30 AM EST

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To: mas_ who wrote (256584)	10/9/2008 11:00:13 PM
From: Elmer Phud	Read Replies (1) of 275872

Yet another opinion so I may as well offer another one of mine. AMD's agreement with A/D was entered into at a time when AMD was in it's most desperate condition ever. They were(are) under a crushing burden of debt, they have sold off practically everything of value, their fabs are under utilized, their products are oversized hence too expensive to make, trailing badly in performance, use too much power and there's nothing in the pipeline to turn things around. Their process is expensive, poor yielding and trails Intel's by a year or more. Their competition is rolling in cash, on a roll and the gap keeps getting wider. Intel's new products are moving to production and AMD doesn't know if their unreleased new products they can even match Intel's previous generation's lower grades. Staggering losses extending over years with more lined up for as far as the eye can see. I think it's safe to say this is not a position of strength to negotiate from. Nevertheless, some posters here and on other boards are of the opinion that AMD has scored a major advantage over Intel because despite an inferior product on an inferior process, the new sugar daddy's from Abu Dhabi will be glad to toss money down the toilet subsidizing AMD products essentially forever, or at least until they can bring the evil empire to it's knees, whichever comes first. I do not share this view. I find it much more plausible to believe that AMD found themselves in a position where they had no choice but to try to use "creative structuring" to bypass the patent license agreement or at least dare Intel to take them to court. In their desperate condition, they don't have anything to lose when they face oblivion otherwise.

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