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To: steve harris who wrote (41104)	4/27/2000 8:44:00 PM
From: Victor Lazlo	Respond to of 93625

Steve, why do you seem to think that just one co has to completely dominate such a huge market as computer memory and processors? Cannot two (or more) co's do well simultaneously in this huge market???? How can Ford, GM, Volvo, Chrysler/D-Benz, Honda, Toyota, BMW, and the rest all make cars?? My gosh, doesn't one reign supreme while all others are terrible ?? I still cannot figure out why the AMD'ers are so defensive and sensitive, even though you've lost huge $$ on AMD stock the last few years. Still, why does one co have to completely dominate such a huge market as computer memory and processors? Is this a guy thing- "beat em up and take all" ? I do not understand why you AMD'ers are all so sensitive. Please help me understand, ok? Victor

To: steve harris who wrote (41104)	4/27/2000 8:48:00 PM
From: mishedlo	Respond to of 93625

Picked this up on the FOOL GG board. Comments on AMD's profit margin VS. Intel's? ===================================================== Would Intel or AMD survive a short term blip in better fashion in terms of the market's reaction to that blip? Could it perhaps be a gorilla game transitioning to a royalty play? Maybe, but I think it is too early to reach this conclusion. In any event, it seems to m that it is easy for all of the major suppliers to win when the market for their product is expanding beyond the ability of all combined manufacturere to supply that market, as is now the case. In this situation, the comapnies are competing against their own ability to ramp-up production -- they can easily sell everything they make. However, once production increases to equate more closely with demand, as it amytoward the end of the year, than the companies will once again be forced to compete against each other, and tactics such as pricing power will again come into play. With INTC's net margins being 30+%, and AMD's being less than 5%, it is not hard to imagine what will happen once there is an overabundance of chips and INTC begins to think that maybe a 28% margin is acceptable as a way to increase its market share and sell all their chips. Then, where will that leave AMD? It still looks like a Gorilla Game to me.