Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Tenchusatsu who wrote (66920)	7/29/1999 7:57:00 PM
From: Cirruslvr	Respond to of 1577890

Tench - RE: "In either case, I seriously doubt that Intel will end up with a bunch of unsold Pentium III's in inventory." They could always dump them on the market like they dumped Celeron 300As in December.

To: Tenchusatsu who wrote (66920)	7/29/1999 9:50:00 PM
From: tejek	Respond to of 1577890

RE: << I've heard a couple of different views regarding AMD's inventory of 2M K6-2's in Q2. The first one was that demand wasn't as strong as AMD had hoped. The second one was that demand was indeed there, but AMD lost customers because of the Q1 manufacturing snafu.>> First what you suggested as a possible scenario in your post, to which I initially responded, was that AMD might have 1 million sales and that would effectively take sales away from intc, leaving intc with a surplus of chips. However you followed that by saying, it would not matter; intc would get rid of those chips by discounting their price. My point was that demand is finite and if AMD fills that demand, lowering prices will not help intc. If the oems do not need them, the only reason for the oem to buy them would be to stock pile for the next quarter which is unlikely for a number of reasons. Secondly I find it highly suspect that an oem would not buy AMD's chips in order to teach them a lesson when the oem has need for those chips. Its the equivalent "of cutting off one's nose to spite one's face". I think the more likely view was that demand was not there (and the oems wanted to teach AMD a lesson). ted