To: Charles R who wrote (85565 ) 1/6/2000 2:03:00 PM From: tejek Respond to
Briefing.com has never spoken well of AMD which makes its comments below more interesting Gateway's disappointment, though, could be Advanced Micro Devices's (AMD) good fortune as Gateway intimated that investors can expect a secondary supplier announcement in the very near future. Recall that Gateway had ceased most of its business with AMD not long ago when Intel reportedly offered Gateway more favorable terms. For Gateway, however, the enticement of lower prices has proven to be a costly strategic approach as evidenced by the aforementioned warning and the fact that its stock is indicated 8 points lower from the close of regular trading yesterday. One consolation for Gateway shareholders may be the manner in which the market treated Apple Computer (AAPL) after that company warned of weaker than expected earnings in September due to supply constraints. Although shares of Apple dropped nearly 27% in the ensuing sessions, they soon rebounded in convincing fashion as the market grew comfortable that Apple's problem was not a lack of demand, but a lack of supply. To that end, Gateway did acknoweledge that it expects the Q4 earnings shortfall to be a one-time event, and that it was comfortable with estimates for the first quarter and this year.-- PJO
