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

To: Dan3 who wrote (93127)	2/14/2000 11:48:00 PM
From: semiconeng	Read Replies (5) \| Respond to of 1580023

The price war is coming, don't doubt it for a minute - just give careful thought as to which of these two companies is best positioned to prosper in such an environment. Dan Your right Dan, I agree, let's take a look at it: The last report I saw was that intel had 10 Billion dollars in cash reserves. Probably true, since they seem to be throwing money around the Telecommunications Industry Left And Right. And their Capital Investment Division actually made money from their investments in Q4. AMD? In the past year, intel has acquired no less than 12 companies involved in the Networking/Internet/e-commerce area. An area that most Analyst's recognize as a mushrooming area of High Technology. While most of those companies, are not making money..... Now.... AMD? Intel's ASP at the end of Q4/99 was estimated by several sources to be somewhere in the neighborhood of $230-250, AMD's was $80. Jerry Sanders himself says he needs $100-130. With Strong PIII selling prices so far in Q1, I think intel will be able to maintain enough ASP to survive until Itanium and Willamette hit the market. On the other hand, with Athlon prices falling through the floor..... AMD? Intel will introduce it's First Generation 64-Bit Processor in 2H this year, and has wide software industry support already. AMD's Pseudo x86-64 is not due to release until 2001, and so far has no announced software support. I must admit that you're "right". The future certainly look bleak for intel, and rosy for AMD......... Not. SemiConEng

To: Dan3 who wrote (93127)	2/15/2000 12:47:00 AM
From: Paul Engel	Read Replies (2) \| Respond to of 1580023

ALibiDan - re: "The price war is coming, don't doubt it for a minute - just give careful thought as to which of these two companies is best positioned to prosper in such an environment." Remember who prospered during 1998 and most of 1999 when AMD and Intel were in a price war. Paul

To: Dan3 who wrote (93127)	2/15/2000 1:16:00 AM
From: SteveC	Read Replies (2) \| Respond to of 1580023

I agree, I don't see how Intel can engage in the same price war with AMD as last year while AMD is producing a chip that matches or exceeds Intel's best chip (for desktops of course). While none of us would like it, AMD's stock price wouldn't be devastated by a price war. The opposite could occur this time for Intel. Intel is going to have to give up market share to AMD in order maintain its profit margins and quarterly earnings, and all the benefits that come from having a richly valued stock.