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Politics : Formerly About Advanced Micro Devices
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To: Jim McMannis who wrote (32991)5/29/1998 1:51:00 AM
From: Matt Webster  Read Replies (3) of 1570393
 
Jim, re: "Will AMD dump the mid range and concentrate on the high end where margins are high? I doubt it so why speculate on it. Jerry has a passion for Intel. Also at this point what chip do they go after the high end with?"

The reason to speculate on this is because I wanted to talk about alternative ways AMD could become a profitable company. They are clearly not having much success now. I think you hit the nail right on the head when you metion that Jerry Sanders has a vendetta with Intel that goes back 20 years. I think this clouds the strategic thinking at AMD. Now that Grove is retired, one wonders if we won't have Sanders out to pasture, too. With a new management team, they may again be open to new ideas.

Think how things could have been. Instead of wasting time on 3DNow!, AMD could have been working on a K6 derivative that had large on-chip cache (L1 and L2), parallel processing, etc. that would be marketed at the high end workstation/server. This was a strategic mistake. They have the engineers, they are aware that server CPU's cost more, what is the problem? It is the Sanders factor. I'd much prefer they charge $1,000/chip and make a profit on a smaller number than charge $100/chip and make a loss on a large number. This would be the "server" ship the Alpha wasn't because it did not have x86 compatibility.

Why has no one else speculated thus?

Matt
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