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Politics : Formerly About Advanced Micro Devices
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To: Steve Porter who wrote (54605)4/7/1999 9:54:00 PM
From: Fred Fahmy  Read Replies (2) of 1571040
 
Steve,

I think we see things very much eye to eye. In fact, I would say that a low key -5% or even -10% pricing policy together with the natural growth in CPU demand would have been enough. The company I work for is in the same position that AMD is in vs. Intel. We are up against a tech industry titan who has about 90% market share and much much deeper pockets than we have. In fact, we have never had a single TV add. We have been able to prosper by offering excellent products at competitive prices not cut-throat prices. In fact, as we have gained acceptance we have been able to get comparable prices. Ours is a value proposition together with a conscious decision to go after specific vertical markets. We have been nibbling away at market share as opposed to trying to start a price war aimed at making huge strides in market share. Our strategy has resulted in our stock going from 20 to 120 in the five years we have been public and our EPS has gone from about .40 to 3.40. Had we tried to start a price war with our industry leader, we would have been buried similar to AMD. Their areways to compete effectively against an industry giant. The problem with AMD and their investors is that they don't have the slightest clue as to how this is done. AMD will go down as a text book example of how NOT to compete against an industry titan.

FF
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