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

To: Scumbria who wrote (63720)	6/29/1999 2:04:00 PM
From: Ali Chen	Respond to of 1577842

Scumbria, <There is no money left to be made in the low end.> You probably should formulate the statement more accurately: "There is no BIG MARGIN left in the low end." and I would agree. This is the market with biggest potential for growth. Therefore it should be quite possible to make money, but not as easy as within Intel monopoly. With AMD entering mid- and high-end, it will be harder and harder to make big easy money in these segments too. Remember, the ultimate goal in this business is to go after huge Intel markups on CPU. Unfortunately, some negative feedback should be anticipated: Intel margins theoretically will go down, AMD margin should rise. Theoretically. Time will tell.

To: Scumbria who wrote (63720)	6/29/1999 2:17:00 PM
From: kash johal	Read Replies (2) \| Respond to of 1577842

Scumbria, Re:" There is no money left to be made in the low end. VIA will compound the problem. Intel is not going to drop their prices on Xeon- that is where they make all their money these days." Intel sells around 1M/Qtr of Xeons. They make a profit of 2Bn/qtr. Are you alleging they profit by $2000 / Xeon. The big BUCKS are CLEARLY in the middle of the road desktop space currently. Regards, Kash

To: Scumbria who wrote (63720)	6/29/1999 3:10:00 PM
From: tejek	Read Replies (2) \| Respond to of 1577842

Scumbria: RE: "There is no money in the low end." By concentrating AMD in the high end aren't you simply reversing its current position at the low end? Which is, in my opinion, what made it so vulnerable in the first place. To put all your eggs in one market 'basket', I think is the problem and not whether its in the low or high end. INTC is diversifying like mad, buying companies like level one, and that is what AMD needs to do if it can make the jump to profitability. The pc chip market is a maturing industry and is too cyclical. A company needs to move into growing segments like telecomm in order to keep growing. I know you didn't ask but I thought you would like to know my opinion on the subject. ted