Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: A. A. LaFountain III who wrote (58782)	5/19/1999 3:28:00 PM
From: Charles R	Read Replies (2) of 1582895

Tad, National used to make money on less than 1 cent parts (I am not kidding). It is all a question of business model - If you know you are shooting for $50 ASP, you will figure out a business model that makes money at that level. This is why I got out of INTC. Intel's biz model is based on getting close $200 ASP. Slow deterioration of ASPs they can handle but collapsing ASPs will put the company through contortions that it never experienced before. IMO, Intel would do lot better conceding market share than collapsing ASPs. Chuck

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