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

To: Charles R who wrote (67487)	8/3/1999 6:12:00 PM
From: Process Boy	Read Replies (2) \| Respond to of 1574727

Charles - <Any alternate thoughts on the subject?> Rumor has it that Raza quit over AMD's Dresden strategy, and the possibility that the debt incurred by that operation may be a big bite for AMD to chew. I would assume that Raza would take in te potential success of the K7 into account when performing his analysis. I have a question. What happens to Austin when Dresden ramps? The copper process is not going to be transferred to Austin, so I am told (which blows my mind). What I am suggesting is that maybe some folks believe that even if the K7 is deemed somewhat of a success, it may not generate enough cash to make AMD the killer investment some folks want. BTW, K7 as a success is still a pretty big IF. So far I have only heard rumor of CPQ and IBM as possible major OEM's supporting K7 in the near term. Any thoughts on what it would mean if for instance Dell and Gateway do not support the K7? PB

To: Charles R who wrote (67487)	8/3/1999 6:22:00 PM
From: kapkan4u	Read Replies (1) \| Respond to of 1574727

<I think the problem may be on the sales side. If I were to take a hack, I would say that K6 ASPs are currently in the $40+ range with volumes not being that strong. Although the K6 volumes could improve significantly by the time the quarter is over, I am fully expecting AMD to lose laptop and desktop market shares for the next 2 months.> Chuck, You may be right, but anecdotal data suggests that k6 revenues will be somewhat better than in Q2. The stronger PC demand, pure-profit k6 Q2 inventory, 810 bugs and 440BX/ZX shortages all point to stronger k6 sales. Flash and Athlon sales should put AMD in sub $100M Q3 loss territory. Try JC's revenue calculator. It is hard to come up with a scenario of less than $400M CPU revenue for Q3. Kap