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

To: Scot who wrote (89354)	1/25/2000 11:38:00 AM
From: tejek	Read Replies (1) \| Respond to of 1580249

How deep the cuts go will be anyone's guess. Some analysts have theorized that Intel can't cut Pentium III prices too drastically because it would hurt profit margins. Last year's price war in the low end was largely subsidized by the more expensive Pentium III. Intel has also been saddled with chip shortages, because it has been releasing processors with less volume than in the past. Scot, I want to point out that this section is incorrect. We have been told over and over again on this thread that Intel is shipping in volume and that the problem is too much demand. ted

To: Scot who wrote (89354)	1/25/2000 11:56:00 AM
From: Charles R	Read Replies (1) \| Respond to of 1580249

<Today's price cuts are fairly typical, said Kevin Krewell, senior analyst at MicroDesign Resources. However, more aggressive cuts are expected in the near future because Intel will be producing more chips and making up lower prices through volume sales and even faster processors. Intel is currently holding a conference with its sales and marketing executives in San Francisco. "When we get to the second quarter, it is going to get worse, because Intel will have a boatload of products out there," Krewell said. "Then you are going to see some serious fights." > My thought process is along the same wavelength as this Krewell guy. Q1 seems to have supply/demand somewhat in balance. I don't see any evidence of price war - yet. Though Q2 environment may not be this benign, I think it is too early to tell if there is going to be a price war in Q2.