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

To: Tenchusatsu who wrote (77450)	10/27/1999 8:20:00 PM
From: RDM	Respond to of 1573694

Ten: Jerry says $10,000 per wafer is a good business. If Athlon yields 160 good die per wafer then it makes sense if the business is big enough. 20,000,000 per year at $50 is $1B per year. Chump change for Intel, not for AMD. $10,000 per wafer is the key. If it can be done, then it is sensible.

To: Tenchusatsu who wrote (77450)	10/27/1999 8:30:00 PM
From: Yougang Xiao	Read Replies (1) \| Respond to of 1573694

<<You don't get it. AMD tried selling processors in the $50 to $60 range once and built a business model around it.>> That's one of the biggest FUDs ever! AMD's b model as you and I both know is based on $100 ASP (sure, not there yet). In the K6x only days, AMD's chips were forced to sell for 50 to 60 range and no higher end cpu to get the blended asp up. With Athlon, blended ASP should go up. But the days of $50 a chip days will remain, whether a K6 or Athlon or Celeron thanks to the brilliance of Intel's segmentation. The point is, as times go by, some speed grades of Athlon will fall into 50 to 60 range. If AMD can sell these chips to MSFT for gamebox, would it be a reasonable deal for AMD? Sure, it is!

To: Tenchusatsu who wrote (77450)	10/27/1999 9:03:00 PM
From: tejek	Read Replies (1) \| Respond to of 1573694

Ten RE <<<You don't get it. AMD tried selling processors in the $50 to $60 range once and built a business model around it. That led to hundreds of millions of dollars lost per quarter. Why is selling Athlons for $50 to $60 good news for AMD, whether it's today or 18 months from now? Come to think of it, why is selling any processor for $50 to $60 good news for AMD, whether it's today or 18 months from now?>>> I don't think you understand what Yougang is saying (and Yougang correct me if I got this wrong) but say today AMD makes a commitment to sell 600 MHz chips to Msft....by the time the transaction is made (2 quarters away), the market which is subject to the same Moore's Law will have devalued the 600 to $50-$60. If I am correct in my understanding, Yougang is assuming that manu. costs for the 600 will have come down enough and that Msft finds a less than state of the art chip acceptable. ted