Kevin, Since Compaq has committed a product to AMD, one might think they know what they are doing, and that AMD has the parts. It might in fact be a good idea to keep Intel in the dark about numbers shipped/speeds etc and with Compaq planting them who needs to know, especially Intel? No problem keeping the shareholders in the dark if it leads to greater profits. There must be a reason why Intel was forced to cut prices ahead of time? they(Intel) have a zillion unsold in stock perhaps?, those parts are falling in value so quickly that the only way to move them is to cut the prices. I wonder if this will induce Compaq to desert AMD?, I suspect not, as Compaq has been fired on by Intel before, and they did not like it at all, which is why the large(for AMD) volume is shipping quietly to Compaq with little fanfare in the press. Intel knows though, and is disquieted about it, as they are quite vulnerable as long as AMD is small, and the disproportionation of trying to wipe out a tiny competitor by price cuts seems to be failing. (by disproportionation, I mean losing $15-20 for each $1 you cost AMD is a disproportional cost, and might only be justified if the victory is worth that price, it might also be called a pyhhric loss if it does not work, also called an utter defeat).
There is some market basis behind the decline in Intel lately, and I suspect it will continue as the market is counting that $15-20 loss and factoring it into account.
Bill |
