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

To: Goutam who wrote (108302)	4/28/2000 3:41:00 PM
From: niceguy767	Read Replies (1) \| Respond to of 1580041

Goutama: Another possibility does exist...that being consumer willingness to pay a premium price for a "SMOOTHER" performing chip, the "spry Athy"...Intel no longer has the superior chip...As a result, the rules are now very different than one year ago...AMD with its "spry Athy" is no longer Intel's "puppet on a string"!

To: Goutam who wrote (108302)	4/28/2000 3:47:00 PM
From: tejek	Read Replies (2) \| Respond to of 1580041

A pricewar will definitely hurt AMD. But the point is, it will hurt Intel even more. To look at how viable or effective the price is going to be, you have to look at the cost of the price war and the goal behind it. Goutama, I do not agree.....as I said to Pete and doug, Intel's margins do not support your argument. As margins stand, AMD will suffer more as prices come down. In the past, Intel was able to push AMD into red at a reasonable cost to them. This cost is fast becoming prohibitive. When AMD was barely able to make sales close to its break even point, any amount of lost revenue due to a price war did put it in a very defensive and dangerous situation while costing only a few hundreds of millions of dollars for Intel. The only reason that lowering costs is prohibitive for Intel now is that will mean sacrificing earnings. And that would result in another black mark that Intel can ill afford. ted