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

To: Jim McMannis who wrote (68162)	8/9/1999 7:27:00 PM
From: Charles R	Read Replies (2) \| Respond to of 1578905

Jim, <Intel has been able to keep them up but now it will take a bit more of a Houdini act.> AMD longs should not be underestimating Intel in this case. Intel does not need "a Houdini act" to keep the the margin% - all it needs is CuMine. With CuMine, their margin% can actually go up (on CuMine, I would estimate ASPs to drop about 30% and costs to drop by about 50%). Revenues and EPS, however, is a different story. Even if they can make the high estimates for Q4, Q1 or Q2 are likely to be disasters for Intel. Assuming Intel stays no more than one speed grade behind AMD, I personally am expecting the OEM pricing top Intel speed grade to be around $400-$500 region for the near future. If it goes below that, I would consider it a serious red flag for both parties (more for INTC than AMD) Chuck

To: Jim McMannis who wrote (68162)	8/9/1999 8:41:00 PM
From: Bill Jackson	Respond to of 1578905

Jim, Yes there is all that stored cash to hammer AMD with. STill better profits in coexistence since AMD cannot fill the market Intel can let it take share and match prices and not aggressively undercut them? The larger loses more than the smaller in this kind of price war since their ASP is cut over more chips. I think the war of extinction can no longer be fought. We will now see a marketing war with soft$ and assorted violations of the Patton act kept secret. Riot act will get read by DOJ. Bill