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

To: Yougang Xiao who wrote (63368)	6/25/1999 3:15:00 PM
From: RDM	Respond to of 1571688

<Walked away, rather than matching, from Intel's Celeron combo deals> Thank you for you interesting insights. I also found comfort that they were able to walk away from direct confrontation of dumping deals. This must have been tough with heavy inventory. Intel to date has taken no action that in their mind directly jeopardizes maintaining profits. Revenue growth has been sacrificed, but not profits. The PIII is the backbone of the Intel profit structure followed by the Xeon at a distant second. It would represent a escalation of the war to slash PIII. This would directly affect profitability and shareholder value. AMD does not present enough threat to warrant this extreme of a response. AMD does not directly threaten the long term dominance of Intel. Intel is developing direct product responses to Athlon and beyond. AMD has shown they not going away and are not giving up their 20-30% share aspirations. They do need to capture commensurate 20-30% profits for this share however and the Athlon is well positioned to do that. The timing remains the only question. The best guess I have is that Q1/2000 will be good, but how many earlier Qs will be remains to be seen. This is not much change from my expectation of six months ago. Although some members of this thread were excited about the June99/July potential from K7, it is easy to be overly optimistic about such an awesome product.

To: Yougang Xiao who wrote (63368)	6/25/1999 3:23:00 PM
From: Tenchusatsu	Read Replies (3) \| Respond to of 1571688

<Jerry's most brilliant stroke in the latest CC is the revealation that AMD is prepared to call truce with Intel. ... Officially abondoned the 25% dicsount policy starting from K7.> Sorry if what I'm about to say comes across as biting, but this so-called "truce" is bogus. Why would AMD price a 600 MHz Athlon under the starting price of a 600 MHz Pentium III (coming out in August), if Athlon is higher performance (thus higher demand) and lower volume? Reminds me of Milosevic trying to look like a dove in the middle of NATO's military action by presenting half-hearted "peace" plans. Both are trying to make themselves look like victims in an effort to win sympathy. Tenchusatsu