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Politics : Formerly About Advanced Micro Devices
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To: Kevin K. Spurway who wrote (29051)3/3/1998 6:06:00 PM
From: Aaron Cooperband  Read Replies (1) of 1574005
 
Kevin -

Re: "This deal doesn't make any sense to me, other than a desperate measure to keep AMD going until Dresden is up and running."

IBM is sure to charge enough to cover both their fab depreciation and their profit. On top of this, AMD will have to continue paying their own fab depreciation and expenses. It will be tough for AMD to cover double the costs while selling CPUs for sub $1000 PCs.

Aaron
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