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

To: Gopher Broke who wrote (113240)	5/29/2000 11:21:00 PM
From: Charles R	Respond to of 1573394

Gopher Broke, <If Dresden is ramping fast then AMD will need to sell in larger volumes, which means taking a bigger percentage of the market from Intel. Traditionally they have had to drop prices to do this. Perhaps they can now pursue the alternative route of increasing performance.> Right now, as we all know the limitations on AMD's part are a) infrastructure and b) business penetration. There is unlikely to be much business at high ASPs until these issues are addressed. Ramping MHz too aggressively until these issues are fully solved does not serve much purpose. Unfortunately for AMD longs, AMD slips in this regard mean that by the time the infrastructure comes up, Intel is likely to start ramping Wilamette potentially forcing AMD into the slightly less profitable mid-range (but still hugely more profitable than the low-end business). AMD is still a GREAT buy but a HUGE opportunity was lost. Chuck

To: Gopher Broke who wrote (113240)	5/30/2000 5:48:00 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 1573394

RE:"If Dresden is ramping fast then AMD will need to sell in larger volumes, which means taking a bigger percentage of the market from Intel. Traditionally they have had to drop prices to do this. Perhaps they can now pursue the alternative route of increasing performance." This is an excellent point. With Dresden coming on line AMD will have a whole lot more chips to sell. Rather than get in a price lowering routine and price war with Intel your suggestion is more palatable. Raising the speeds is a luxury. More Megahertz sells for mo' money. Let Intel grovel it out in the low/mid range... ALSO, my take is that people "still" would rather either get less or pay more for an Intel chip so AMD will likely have to offer more speed for the same price. At least they can do it... Jim