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

To: tejek who wrote (65815)	7/16/1999 3:51:00 PM
From: Charles R	Read Replies (1) \| Respond to of 1573952

ted, <First the demand does not appear to be high right now with all the surpluses of chips, excess disk drives and the slowing revenue growth of boxmakers> What I think you are pointing to is excess supply rather than weak demand. I don't have the numbers handy but the microprocessor unit shipments (1998-1999 YTD) are up approx 20%. Hardly a sign of weak demand. If capacity is ahead of demand then the manufacturers ASPs will go down and they may not make much money. The PC business on the whole is headed the commodity way which means that in a typical year very few manufacturers (silicon or subcomponents or systems) are going to make money. Niche players will thrive and main stream guys will suffer. Low cost producers in general will prosper. I think the real money is not on the hardware side. IMHO, most of the money to be made is in software and services. (MSFT is my largest holding) Chuck