Hi Mary,
Thank you very much. I get your points and I agree with you for the most part. I am not so much concerned of AMD beating Intel as concerned of AMD eroding Intel's profit margin. Looking back in the last year or two, Intel's earning growth has slowed, and AMD's K6 contribute to a lot of it. Earlier this year, Intel reshulffled its business model and focused on both the server market and the consumer market. This was a great move, and that's why earning is growing again.
AMD's market share in the sub-$1000 market is close to that of Intel. Looking at K7, I just wonder if it will do the same in the high end market. I don't think that comparing K7 to ISDN or JAVA is appropiate. ISDN is more costly than POTS, and JAVA is a lot slower than native code. K7 will probably be priced less than comparable processor from Intel, and on paper, K7 does look pretty competitive in performance.
Thank you for sharing your points with me. Though you have not erase my worries over K7, you have reaffirmed my believe that Intel is a much better company than AMD, and that INTC is definitely good for long term. I am planning to stick with my INTC a little bit longer. INTC should be fine for right now, because the earning for this quarter is going to support it at this price level. Mean while, I will be closely watching AMD's progress with K7. If AMD plans to continue its money loosing strategy with K7, INTC may have a tough time in the second half of 1999.
Regards,
Khan Liu |
