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Politics : Formerly About Advanced Micro Devices
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To: Scumbria who wrote (54614)4/8/1999 9:36:00 AM
From: Steve Porter  Read Replies (1) of 1571120
 
Scumbria,

The ONLY reasons AMD based systems sell for less is because AMD allowed their product to be hammered into that pricing range. Hell Intel sells Celerons at lower prices than some AMD chips but the boxes usually command a premium. You think this is because Compaq doesn't want to be selling $3K AMD based machines. No it's because AMD has let it happen.

I'm not presuming to know better than the company's management. I'm just applying standard life and business sense to the problem. I see the fault being placed right back at the start of the chain with AMD.

Let's take an example. AMD publically said "25% less" at a time when due to manufacturing problems, their chips were costing 2-3x a Intel processor to make. This was clearly foolish. AMD couldn't supply the volume at that point in time to vendors that were already on board. 25% bought them nothing but losses.

I can see AMD saying 25% less when everything is running smooth, you have tons of chips and you need to inspire sales. But at that point in time AMD would have done quite well to shut up, sell their entire product at roughly par to Intel (they would have had no problems doing it with such low volume) and then evaluated things down the road.

Regards,

Steve

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