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

To: Paul Engel who wrote (63562)	6/28/1999 2:17:00 AM
From: Jim McMannis	Read Replies (3) \| Respond to of 1571438

Frantic Paul, This $200M loss amazes me. It keeps going back to that "late mask" design problem with the CXT core back in late Q4 and early Q1. AMD had market share on Intel at retail. They had carved out a niche at the low end with the K6-2. Then they couldn't deliver to tier 2s and 3s and "poof" just like that the Celeron ate their lunch. When they did get production fixed they tried to get back the lost accounts but were told...no thanks, "we are quite happy with the Celeron". Well, something tells me that AMD is going to try like heck to get those Tier 2 and 3 OEMS back. How are they going to do it? Why...drop their prices on the K6-2s to an average of under $60 a chip. Blow out that inventory. I figure 40k K7s shipped this QTR and maybe 300k in Q3 (lowering my estimate)...well it aint lookin' too good for Q3 as you well know. Looks like no profits until Q4 and man have I heard "that" before. AMD sure needed that reprieve that Intel gave them with the CuLater Mine coming next year...Although I'm beginning to wonder how far the K7 will be ramped by then... Man, how does AMD do it? <G> Jim