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

To: Process Boy who wrote (87638)	1/17/2000 4:35:00 AM
From: Goutam	Read Replies (2) \| Respond to of 1573433

PB, Rhetorical question (don't take it the wrong way): Why didn't AMD foresee that there would be this much demand for the 500's and accommodate the market by bringing more capacity online to handle the demand? Couldn't they have known that the 500's would be hot sellers, and just adjusted their production schedules accordingly? Maybe they could have cut back on some of their .18 production to meet this demand at the low end? There was no exclusive agreement between AMD and Taiwan, and there weren't any AMD commitments made to Taiwan ;-) Seriously, they are going to obsolete Athlon 500s. In a few more days, Athlon 550s are going to go for about the same price as the current 500s. Goutama

To: Process Boy who wrote (87638)	1/17/2000 3:28:00 PM
From: tejek	Respond to of 1573433

Rhetorical question (don't take it the wrong way): Why didn't AMD foresee that there would be this much demand for the 500's and accommodate the market by bringing more capacity online to handle the demand? Couldn't they have known that the 500's would be hot sellers, and just adjusted their production schedules accordingly? Maybe they could have cut back on some of their .18 production to meet this demand at the low end? :-) PB, while I know you are joking, I want to point out some differences between the two incidents that are important: 1. The Athlon problem occurred at the end of the all important Xmas season.....the worst is over so catch up can be fairly fast. 2. An simple and reasonable alternative was available...the 550. 3. Its not a specific and valued and important long time customer but customers who may or may not be long term in the future. PB, Intel clearly will survive the problems with GTW but there was something significant lost in this transaction and that's Good Will. As you know, accountants assign a quantitative value to Good Will even though the term is vague and unspecific. The reason being is that it does have financial impact on a companies balance sheet. And the Good Will that Intel lost was not just with GTW but its other customers as well. Having and not having Good Will means the difference between getting some slack and not getting slack when a future shipment is late; getting a referral to another customer and not getting a referral; having the current customer throw more business your way and not having them do so etc. In other words there are monetary benefits (or losses) to Good Will. And that's why if Intel is smart, it will not take lightly what happened this past quarter. Look what happened to AMD for screwing up earlier this year....it lost significant business from GTW and others. Now that there are reasonable alternatives developing, the same thing could happen to Intel. I promise, last time I will bring up this stuff. ted