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

To: Michael DaKota who wrote (69519)	8/22/1999 8:19:00 AM
From: Process Boy	Respond to of 1573827

Micheal - <Intel just started digging their own grave - in an AMD-ish way - > There is a lot of speculation that the Intel price cuts could result in Intel becoming Celerons-R-Us with massive detriment to Intel's bottom line. I don't think Intel's top brass have a death wish, so I am assuming since they have a plan and are pricing accordingly. One thing to consider; yes the price cuts have accelerated, but so have the product introductions of late. Intel is set to bring 4 fabs on line pumping out .18 product, with very favorable cost structure. They may be clearing the way for these upcoming products, coupled with responding to AMD. Just one WAG. I have no visibility on pricing decisions. But you're right, if the correct balance isn't struck, it could cause Intel problems. <But its up to amd what they want to do...they dont have (im speculating here ofcourse) large volumes of K7, so they sureley will sell ALL of them for almost any given price, high or low.> I question this, and so do some analysts. People are rah-rah over the K7...on paper. How many customers they ultimately have if they aren't price competitive is subject to debate. I thought I read a recent blurb out of an article that one firm's market research indicated that [to paraphrase] the AMD brand was only compelling for price, and if you take that away, interest fades rapidly. I believe this was in a Cnet article. I would think while AMD is trying to establish their brand against Intel's they will have to price competitively. The lack of Tier one OEM's announcing K7 SKU's has got to cause the AMD marketing guys some consternation. <If amd aknowledges that its in the leading position, and prices their Athlons in the same way, that would be interesting. Because PRICE is a big factor in what makes a product low end or high end, as we have seen in the past.> In a manner of speaking I believe this logic holds. If it translates into enough sales for AMD to make a decent profit is another question, if they go for price over volume. <I know that people are willing to search earth and moon for a certain system they have set their minds on.> Well, here's another one for your consideration. :-) PB