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

To: Joe NYC who wrote (105479)	4/14/2000 11:41:00 PM
From: Charles R	Read Replies (2) \| Respond to of 1574098

Petz, <I think in Q1, the quantities of Athlon chips were still too small to amount to any pressure on Intel. Intel is still charging more per equivalently clocked part.> If I were Dell, I would be pissed if Intel is giving me 800/850MHz parts at a substantial premium to what Gateway is paying for AMD 800/850s. I will pay some premium but it cannot be too large. I am sure Intel can charge an arm and a leg with most OEMS given the supply constraints but it is pretty safe bet that Intel's ASPs at the high-end are steadily going south since Gateway picked up Athlons. <In light of all the problems of the processor and chipset business, I think blow-out is less likely, unless some other division can step up, and contribute seriously.> Earnings probably will be pretty good (not GREAT but good) and that is due to ASPs. Intel pulled a quick-one by cutting down Celerons and pushing a lot of CuMines in Q1 (and AMD promptly cleaned up at the low-end because of that). <But I don't think AMD is threatening Intel's earnings yet. That may start in Q3.> I think it is already happened and I expect Intel's Q2 to be pretty bad. For the entire quarter, AMD will be shipping 3 speed grades or more ahead of Intel - this is a situation that Intel never faced before. I fully expect Intel to call for a sequentially down quarter (and probably take NASDAQ further down with it). Chuck