Khan, >>>I want sell INTC, because I am fearing AMD's K7 and K6-3.....Please, someone explain to me why I should think otherwise.<<<
Let me give it a try.
Even if you start out with a clearly better product as in Sony Betamax versus VHS or Apple versus MS DOS, for example - you are not guaranteed success. How many times have you heard that something terrific is going to happen in the future - and the future never comes. For example, ISDN - it still does nothing. Or Java - all the technical people (and Scott McNealy and SUNW spend a lot of PR money) tell me how wonderful and elegant it is - yet I don't see anything serious being done in Java.
In this case, Intel is already very successful - with strong customer relations, powerful name recognition, a proven track record for reliability, recognized manufacturing prowess, and strong financial resources - for AMD to take on Intel with only a good design on paper is like (an old american saying): trying to close the barn door after the horses have already been stolen.
As for AMD's K7 and K6-3 - you yourself identify quite a number of if's. For that, there is still another old saying in America - If wishes were horses, beggars would ride.
Further, Intel has a very strong balance sheet (with a lot of cash on hand) whereas AMD is very much in debt and need more financing to grow. In almost any business and in almost any activity - the people with a lot more money and who also happen to be very good business people - they are very difficult to compete with - sometimes almost inpossible. Do not underestimate the power of money.
Still another thing to remember is that Intel's business fundamentals right now are very strong. They are the low cost producers and they are selling out everything they are making - and selling it at a very good profit.
Even if AMD were to overcome their manufacturing and management problems, they are still burdened by heavy debt. I am not financially savvy enough to fully understand the consequences of a heavy debt load, but I do know what it would be like to keep up with the Jones's next door if I were heavily in debt and they had good balances in their bank account. No matter how pretty I may be or how smart I was - it would be very difficult for me to keep up with my neighbors.
Please continue to try to get a good understanding of this problem - I am sure there are many here who would like to know the truth also.
Sincerely,
Mary Cluney |
