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

To: DRBES who wrote (85768)	1/7/2000 11:30:00 AM
From: Elmer	Read Replies (2) \| Respond to of 1572778

Re: "inteL could not deliver and there may be a disagreement between the two companies as to how much gatewaY is actually owed." Darbes, I might have missed it but nowhere have I seen any claim by Gateway that Intel missed delivering on it's commitments. Yes, GTW is p*ssed because they couldn't get all they wanted, but just where is there a claim that GTW didn't receive their committed allotment, rather that an upside request? EP

To: DRBES who wrote (85768)	1/7/2000 12:28:00 PM
From: Greater Fool	Read Replies (2) \| Respond to of 1572778

I don't agree that Intel is stupid per se; they don't have a choice, as the only floor to their prices is the variable cost of making the chips, which is quite low. They HAVE to sell the Celerons at whatever price the market will pay, which isn't much. To cede that market to AMD would only strengthen AMD's position and leave Intel with excess capacity, so Intel was forced to sell products in that market. Intel was very aggressive in dealing with Gateway because once Gateway fell they knew Dell couldn't be far behind. Intel can sustain negative cash flows for a very long time before running into trouble; however, any impaired profits will probably hit the stock price and thus ruin employee loyalty, many of whom work there for the stock and not much else. That would hurt Intel a lot. AMD will definitely make lots and lots of Athlons, and they will sell all of them, to all the significant (and most of the insignificant) computer makers. AMD will severely hamper Intel's profitability across all those segments, but this does not imply that AMD will be as profitable as Intel was in those segments. I predict the final outcome of all this is that both Intel and AMD end up being just moderately successful companies. For AMD this will be a huge win, relatively speaking, and for Intel it will be a huge loss, again relatively speaking.