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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Scumbria who wrote (83506)	6/15/1999 1:10:00 PM
From: Tenchusatsu	Respond to of 186894

<Every time they have missed schedule by a few weeks, it gets amplified out of proportion by the investment community.> Amplified out of proportion? When you're talking about tens, even hundreds of millions of dollars in losses, there really is no need for amplification. The bottom line speaks for itself. <Perhaps Intel will find themselves in a similar position in the not too distant future?> Unlikely, but not for the reasons you might think of. It depends on whether Intel is willing to be nimble and maneuverable, which is quite a complex question. <As much as everyone likes to blame AMD manufacturing for the lack of profitability, the real issue has been that the K6 design was not fast enough to get past the market segmentation price/performance curve knee.> Not really. K6, and later K6-2, was successful in uncovering a new sub-$1000 PC market. Speed was only a secondary concern. Price and plentiful supply was the primary one. AMD was willing to meet the low price, but in order to do that, AMD had to make up for the razor-thin margins with high volumes. And that was something that AMD couldn't sustain consistently. Now that the K7 is only weeks away (or months, depending how you look at it), AMD has a chance to get out of a low-end market it was never meant to supply in the first place. Why was AMD never meant to stay in the sub-$1000 PC market? It's like I said before, low cost and high volumes, two things that AMD just can't seem to achieve at the same time. Better to leave that to Intel who can supply that market better than to try and cover all the bases even with Dresden coming on line. Tenchusatsu