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

To: Dan3 who wrote (74596)	10/7/1999 11:21:00 PM
From: kash johal	Read Replies (2) \| Respond to of 1574097

Dan3, Look Intel is reducing its costs. Current average ASPs are in the $200 range. They are getting rid of the cartridge - say $15 savings. They are incorporating the external 512K cache - say $10 savings. They are slashing die sizes from 150/120 down to 100mm2 in 0.18 micron increasing die per wafer say 70-80% - savings of perhaps $15. So with a 55% CPU business their cost was $80-90. So now cost will be $40-50 per unit. THE SHOCKING THING is that with a $150 average ASP margins will increase. Intel is positioned very well to compete. What is there about the math that is so difficult to understand? Now obviously they will still try and maintain close to $200 ASPs by growing the server biz. And profits should be helped by explosive flash growth as well. I agree that AMD is positioned very well for an explosive uptick because it is seriously undervalued. But my point is that we should be realistic in our analysis. Intel is here to stay and they seem to be to be awfully well positioned for growth and earnings in 2000 - due to their excellent cost controls. AMD could learn a lot from Intel on this matter. regards, kash