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

To: niceguy767 who wrote (84003)	12/22/1999 3:37:00 PM
From: Elmer	Read Replies (3) \| Respond to of 1572373

Why is AMD tanking here? 28-7/8s and headed south. EP

To: niceguy767 who wrote (84003)	12/22/1999 5:27:00 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1572373

Niceguy, <All things equal, additional supply of 1 million Athlon units in the top end has created additional demand? (Plausible I guess but no easy sell here on that notion).> Yeah, I was thinking about that notion as I typed up my arguments, and whether I needed to explain things a little. The concept of additional supply in the high-end driving demand kind of doesn't make any sense at first. But in this case, that's what happens. People who are buying in the high-end just want to buy whatever happens to be the fastest at the time (or second or third fastest, depending on what they can afford). Once faster products are introduced, those same people then move up their expectations accordingly. It's your regular pushing of the envelope. For instance, say AMD wasn't doing so well this quarter, and Intel decided that 667 MHz Pentium III would be it for this year. Then people buying in the high-end would expect nothing less than 600 to 667 MHz processors in their systems. Now throw in the "spry Athy" (as you call it) into the picture with their top speeds of 700 and 750 MHz. Now these people expect nothing less than 700 to 750 MHz. In short, they're buying speed because it's available, not because they necessarily need it now. AMD's presence in the high-end may be small (800K to 1200K units), but it's enough to make people want to say, "I want that now!" "I want it too!" <it's difficult to understand how one can produce PWeeIII 800's when 733's remain a problem> Well, that's what phantom announcements are for, no? But perhaps the marketing guys want Intel to be the ones pushing the envelope, and not AMD. I'd prefer that things not work this way, but what can I say? I know, I criticized AMD in the past for making phantom announcements. Oh well. In any case, I guess Intel marketing decided that if AMD can push the envelope with a small number of units, they'll go ahead and do the same. Unfortunately, Intel as the volume leader will be criticized more for this than AMD was in the past. Tenchusatsu