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

To: kash johal who wrote (63144)	6/24/1999 12:57:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1572604

With AMD slowly staggering back above $17 I hope all those who were anxious to get on board did so in the $16s. EP

To: kash johal who wrote (63144)	6/24/1999 1:20:00 PM
From: tejek	Read Replies (1) \| Respond to of 1572604

Kash: RE: "If intc is willing to sell the cpu/motherboard combo for sub $100 than AMD......" My impression from the cc is that the cpu/motherboard sets that intc marked down below $100 were old, much less than, state of the art sets that had been in its inventory and that probably intc was glad to unload. Since intc is a company that executes flawlessly and rarely errs, I can not imagine that there were more than maybe 10 or 12 of those extraneous sets to unload. My point is that there is a limit to how many of those leftover sets exist in intc's inventory and that eventually they will be gone. Once that happens, then I do not believe that intc will be as willing to mark down as much the new sets coming off the manu. line. So I suspect they will not be the factor they were last quarter. Do you agree? ted

To: kash johal who wrote (63144)	6/24/1999 1:23:00 PM
From: Charles R	Read Replies (4) \| Respond to of 1572604

Kash, <I suspect that days of $500-600 desktop chips will be over soon frankly once K7 volumes exceed 1M/Qtr.> IMHO, a more accurate way to phrase it might be "the sales volume of $500-600 ASP desktop chips will decrease significantly over time". About K7 volumes exceeding 1M/qtr - I say the odds are pretty good that that benchmark will be reached in Q3. Let's look at the following: - AMD produced 6Mu K6s and 10s of Ku of K7s in Q2. - AMD has over 2Mu K6s for Q3 needs. - Assume AMD produces 2-3Mu more K6s in Q3. Now, what do you think about how many K7s AMD can produce in Q3? As of Q3, it appears that the risk has now moved from production to sales. I think the strategy of using low K7 prices (lower than PIII, I mean) was an excellent strategy for the short-term. Systems guys can use part of the cost savings to increase ad spending, "spiff" and other marketing expenses. IMHO, the answer lies not in the consumer channel but the business side. Will Compaq, Gateway, IBM and HP create enough business SKUs to take advantage of Dell's absence in the high-performance systems range? Dell's systems with PIII-550 and PIII-600, some of them with the super-expensive DRDRAM, will be severely handicapped. This may be a good chance for Dell's competitors to reduce Dell's momentum but it is to be seen if they have the marketing savvy to pull-through. For the time being, my current #1 concerns is: Can AMD push through 1Mu high-end products in Q3? Chuck