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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (61907)	6/16/1999 5:03:00 AM
From: Jens M. Ottow	Read Replies (3) \| Respond to of 1573718

A photograph of FAB 30, Dresden: entlwa.et.tu-dresden.de Go AMD, Jens

To: Amy J who wrote (61907)	6/16/1999 2:34:00 PM
From: tejek	Read Replies (1) \| Respond to of 1573718

Amy Thanks for your response.....and I thought I had an overload of factual info rolling around my brain. You definitely have me beat. I am going to assume you are pretty much right on your figures.....they make sense except I thought intc's portion of the server market was larger but then I usually underestimate sun and I always forget that they produce their own chips. After looking at these numbers I understand why the argument has been made that IAs will impact both intc's and for that matter amd's business significantly. You made the argument (as many have and as I would) that there is a lot of pc business out there to be had since the level of pc penetration outside of the US, Canada and Europe is much lower than in the three pc intensive areas. However that is assuming that pc's will be purchased at the same proportionate rate as in the US. And I am not sure that that will happen. If IAs become widely accepted and are manufactured in sufficient quantities to make them cheap, they just may become the inexpensive substitutes for the pc. IAs will permit the lower and middle classes in the rest of the world countries to avoid the expense of a pc. Lets face it, (although we say otherwise) most of us would survive if we did not have a pc at home. But we have the disposable income and so we buy them. Now if you are in Colombia's lower middle class with very little disposable income what are you most likely to buy: a tv AND a pc or simply a tv that provides home entertainment as well as access to the net. I think the choice is pretty obvious. Wouldn't you agree? I think this is where the argument derives from when people say that IAs would impact pc sales sufficiently enough so that the rate of pc growth would begin to slow measurably even with so much of the world's markets untapped. And this would explain intc's purchases of companies like level one (telecomm chips) and the talk of dell becoming an ISP. I think they recognize that their future growth will come from outside the pc industry. And I can also see why intc's positioning in the chip industry can be diluted depending on how things unfold. Of course this is all supposition on everyone's part but it is not outside the realm of possibility. What do you think? As for servers I don't know how much of an inroad either intc or amd can make against sun......they are a feisty competitor and move quickly to oppose a challenge. Have you ever heard their ceo speak? In my estimation that man does not believe the words "can't do" exist. I would be interested in your comments. Thanks. ted