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Politics : Formerly About Advanced Micro Devices
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To: Gary Ng who wrote (53158)3/22/1999 10:15:00 AM
From: Bill Jackson  Read Replies (1) of 1583406
 
Gary, AMD is trapped at the low end, it has to sell beneath Intel by some margin, thus all production costs being the same will make less than Intel on thses low end sales. Intel may have better yields? Intel also has the high end processors on which it makes 95% margins. AMD has no high end processors.
Now AMD is trying to move up market and get some decent profits, so Intel intensifies the price cuts in the hopes of denying them entry. the last thing Intel wants is a chip for chip competitor at all levels.

Bill
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