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

To: Jim McMannis who wrote (81190)	11/27/1999 1:32:00 PM
From: Charles R	Read Replies (1) \| Respond to of 1573943

Jim, <I suppose Dell looked at the latest sales figures showing Compaq soundly regaining the lead and started to figure it out...<G> > I am with you on this one. Actually there could be more here than that meets the eye. Retail market is volume intensive at the low ASP-side. In Q4 Compaq was getting plenty of low-end chips from AMD but HP and Gateway were not getting the required amount of low-end Celerons. Intel, by forcing the OEMs to move up the segmentation ladder, by denying allocations of low-speed Celerons and PIIIs may have caused considerable grief to the Intel dependent OEMs that have a lot of retail business (HP, Gateway, Emachines for sure and even Dell to some extent). The move helps Intel's Q4 but was bound to have longer term consequences. I noted this a while back when I learned about Intel pushing OEMs up the ASP mark. Dependence on a single supplier is typically a bad idea and its negative impacts show up on times like this one. This should stengthen AMD's position and help it a lot in building volumes as we go forward. Chuck

To: Jim McMannis who wrote (81190)	11/27/1999 2:47:00 PM
From: tejek	Read Replies (1) \| Respond to of 1573943

RE <<<I suppose Dell looked at the latest sales figures showing Compaq soundly regaining the lead and started to figure it out...<G> >>> Jim, I find it hard to believe that intc's cumine production is so bad that it can not satisfy Dell's needs this quarter and that Dell is considering buying from AMD. I think this rumor is piggying back off the GTW rumor and sounds a bit off the wall. While AMD seemingly has improved its production abilities, I believe it will take several quarters of production stability before Dell would even consider AMD because of Dell's direct market approach to selling. Coining a phrase from Greenspan, this thread seems to be in danger of some "irrational exuberance" and "caution is advised". After all this is still AMD we are dealing with. ted