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Politics : Formerly About Advanced Micro Devices
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To: Scumbria who wrote (53700)3/30/1999 6:15:00 PM
From: Tenchusatsu  Read Replies (2) of 1572441
 
<Why do you say that AMD's plans have gone awry? They are moving forward rapidly with no change in direction.>

It's that "winning" vs. "success" thing again. AMD is certainly moving forward technology-wise, but in terms of profits, they have yet to show me that they are a long-term money-making investment. It's the "profitability" plans that AMD failed to achieve.

You'll disagree with me as usual, but I agree with the Intel-a-bees that AMD was the one who started the low-end price war. They were betting on the notion that Intel is too concerned about high margins to respond. Instead of gaining marketshare slowly but surely, AMD got greedy and sacrificed near-term profitability for marketshare. Instead of staying closer to Intel's own pricing structure, AMD went under the belt and made the now-defunct "25% discount" promise. And AMD went with a business model that demanded perfect execution at near inhuman rates in order to make a buck against big ole Intel.

Now once again AMD shareholders, including potential ones like myself, are being told that profits are just around the corner. I'm sorry, but I need a little more convincing before I can believe that. AMD has certainly gained on Intel, no doubt about that, but I contend that AMD could have gotten where they are now yet still made a handsome profit had they not gone with such a high-risk business plan.

Remember, this is Silicon Investor, not alt.amd.advocacy.

Tenchusatsu
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