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

To: Yougang Xiao who wrote (90561)	1/30/2000 11:53:00 PM
From: tejek	Read Replies (1) \| Respond to of 1578485

No, AMD cannot and should not exit low end. There is not enough volume to support AMD at the high end. I agree completely. ted

To: Yougang Xiao who wrote (90561)	1/31/2000 12:08:00 AM
From: Petz	Read Replies (1) \| Respond to of 1578485

Yougang, my response to two of your statements: <Frankly, the uncertainty of relationship with Intel is the single most important negative factor that holds AMD stock where it is. Wallstreet, you, PB and I all need for our respective interests to see the war turns into peace. With Via, that hope is remoter than ever.> I think its unrealistic to expect Intel to "make peace" with AMD. If AMD's products are equivalent and VIA does not exist, the result will be a stalemate with AMD perhaps achieving 25% market share and 40% gross profit margins, much lower than Intel's 60% gross profit margins. If VIA is a viable competitor on the low end, Intel's pricing would be less agressive on the mid-high end and much more agressive on the low end. Although a stalemate can occur, the second AMD loses equivalency, Intel could "go for the kill." But the chances of this are much lower if Intel also has an anklebiter VIA to worry about which is lowering its overall margins and potential warchest against AMD. <Tom Dunlop does Intel and AMD no good by not going after Via/NSM CPU fab deal!> Please explain this one. Who is Tom Dunlop? <No, AMD cannot and should not exit low end. There is not enough volume to support AMD at the high end.> For now, I agree totally. It will take time to change perceptions, especially in the business market. And it would be a terrible mistake to drop the K6 line without a strong competitor to take over that market segment and without a low cost version of the Athlon to go after the middle market segment. Petz