Formerly About Advanced Micro Devices Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: nihil who wrote (40864)	11/5/1998 6:18:00 AM
From: Crossy	Read Replies (1) of 1573213

Nihil, I believe that in semis economies of scale rules the world. That in turn means that production capacity is the major force. Intel can't continue cutting the ASP on its own chips when AMD finally managed to claim increased market share right now. It would hurt its own profitability quite considerably. Its own game in the past was to lower the entry-level segment prices and to milk notebook & highend segments. However now that AMD is developing a full-scale portfolio this strategy won't do it anymore. If INTC did that again, the're wouldn't be any segment left which they could skim. Not the notebook semgnet (K6 notebook) not the Server segment (K7). For this reason today's situation is IMHO much different from the days when alternative X86 design only competed versus the low-end of INTC. Now competition is about to unleash in all segments. I predict that INTC has to go for a different strategy set this time. I don't think that the old accelerated ASP cuts would continue with this unfolding. Maybe first indication of a different strategy are INTC investing in LINUX. This is much more of an indication than many might believe.. regards CROSSY

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next