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

To: kash johal who wrote (109569)	5/6/2000 1:36:00 PM
From: minnow68	Read Replies (1) \| Respond to of 1575947

Kash, You wrote "If Intel pushes out 10M timna/MB units/qtr this causes AMD major grief IMHO" I'm not sure Intel could sell that many. Even if they could, 10 million a quarter would do incredible damage to Intel's higher margin processor business. At $80 for the processor and MB, that doesn't come close to paying its share of Intel's fixed overhead costs. If Intel did this anyway, AMD could withdraw from the low end of the market. I would not shed any tears if AMD sold "only" 4 million Athlons in Q4'00 at an ASP of $250. Any extra capacity could be used for flash. Mike

To: kash johal who wrote (109569)	5/7/2000 1:52:00 AM
From: Charles R	Read Replies (1) \| Respond to of 1575947

Kash, <My point is that AMD cannot compete with Timna.> And, my point is AMD shouldn't compete with Timna. <If Intel pushes out 10M timna/MB units/qtr this causes AMD major grief IMHO.> Even assuming the market can support that many Timnas in the near term, I doubt if such a ramp is even possible for Intel in 2000. 2001 is not something that bothers me yet. <And this may well make it VERY difficult for AMD to sell 7M+ AThlons in Q4 at reasonable margins.> 7M+ Athlons in Q4 is going to be tough, unless AMD can land a lot of corporate SKUs in Q2/Q3. That's the key reason why I am concerned about infrastructure. 750 chipsets will do fine int he consumer domain but Corporate MIS is unlikely to find that an acceptable platform for new system purchases. <And your point about a $50 spitfire plus integrated chipsets (say $25) plus MB (say $30) equals $105. The $35 cost difference to OEM will translate to $100 difference in retail.> As I have been saying, I do not quite expect Timna and Spitfire to play in the same segment. Chuck