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

To: Elmer who wrote (94808)	2/23/2000 4:17:00 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 1570320

RE:"Others have been saying this for years and they got trashed for it. If AMD did the smart thing they would convert Dresden over to Flash pronto. They are dropping Athlon prices to dump excess inventory. Intel has now got it's act together and a huge wave of CuMines is descending on the marketplace. Dresden is a white elephant. The only thing that keeps them from doing the smart thing is Jerry. How could he blow our money fighting Intel if all he cared about was long term profits?" Elmer... I thought you were coming around 'til you got to the second sentence. Truth is that AMD is selling all the Athlons they can make. Sure they cut prices but they are also adding speed grades...that's they way it's supposed to be done. If they were slashing prices and not adding speed grades I'd be more worried. Dresden is not a white elephant. They will ship athlons when the time is right and this is determined as much by finance agreements as being ramped. After they start shipping and if demand isn't there then OK...you win...they will need to convert some space to other endeavors. Even then, how do you know Dresden isn't ramping some flash there now? Also, in view of worldwide chip demand, it seems Dresden will be making "something" and lots of it so I doubt the FAB will go to waste like you are hoping. As least we partially agree. AMD should be building in some fail safe mechanisms such as more flash capacity while the coffers are full... I don't know what else....but they should be looking forward... Jim

To: Elmer who wrote (94808)	2/23/2000 5:34:00 PM
From: niceguy767	Read Replies (1) \| Respond to of 1570320

Hi Fudd: Re: "They are dropping Athlon prices to dump excess inventory. Intel has now got it's act together and a huge wave of CuMines is descending on the marketplace." Comment (1): AMD does have inventory above 700MHz to sell at retail, something Intel doesn't have to worry about because the PWeeIII architectural constraints won't permit significant quantities over 700 MHz at retail. Comment (2): AMD Q1 revenues will exceed Q4 all-time record revenues...Bin splits must be awesome...Nice to have product above 700MHz to be able to cut prices owing to lack of competition and gain market share. Comment (3): Intel is reeling owing to these price cuts...Intel can't compete with the "spry Athy" on a price/performance basis...Intel's reign as uncontested microprocessor king has ended, possibly in ignominy, exemplified by their current inability to compete with Athlon at *00 MHz or better!