g,you assume that since they haven't made money in the past that they won't in the future (actually, they can just break even and stay around forever).
skeeter, I assume no such thing. In fact, I assume they will make money in the future. Only they will do it selling fewer, higher end CPUs. I am assuming AMD will basically give the the low end to INTC because they simply have no hope of making money there. INTC will simply bleed them to death by pricing at or below AMD, like they are doing now. Since INTC is untouchable from a manufacturing perspective (yield, speed sort, volume ramp, etc), AMD will have to look elsewhere. They need to sell above $100 to break even. INTC can sell below and still make decent money. They only hope for AMD is at the mid and high end with K6-3 and K7 which they can sell for $200. But they are much larger die chips, and hence lower yielding by definition, and hence they cannot be produced in the same volume as K6-2. AMD will see this light soon.
They will be able to be profitable, but at the expense of market share. INTC will again own the low-end, but at price points of their own choosing. Much like the good old days <g>. |
