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

To: Dan3 who wrote (87547)	1/16/2000 11:00:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1572207

Re: "There were plenty of Motherboards by mid Q4, the problem for AMD was that they had to sit on some inventory in order to maintain product differentiation - the market wasn't ready for as large a volume of high end AMD branded parts as AMD (somewhat to its surprise, I suspect) had available. In other words, my guess is that AMD could have increased total revenue by selling more 650MHZ label parts at greatly reduced (from what were charged) prices - but they didn't. Instead they exchanged lower total revenues in exchange for establishing Athlon as a premium brand." If what you say is correct this means AMD is sitting on inventory they couldn't sell, even with a full supply of MBs and even with Intel capacity constrained and sockets going unfilled AND in an extremely strong market. What does this foretell when Intel fully converts over to .18u in all their fabs and lowers prices? What happens when that white elephant Fab30 comes on line and there are more unsold Athlons? EP