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

To: xun who wrote (113546)	5/31/2000 10:45:00 AM
From: EricRR	Read Replies (2) \| Respond to of 1577033

Panic- Good analysis. There's still lots of money to be made in the CPU business. All these comunication infrastructure wanabees are in for a rude surprise. Yes their market is taking off, but what are the entry costs for competitors? not high enough to keep everyone and his brother form rushing in. It my book it's just common sense. If company "A" is making fat profits, he'd better hope he's in an industry where it takes years, (how long to build a fab? design a cpu?) and billions, to enter. Pharmaceutical is another. Owning a standard (like microsoft) is another. This is the fundamental flaw with most internet stocks. The barrier to entry is just too low to protect those fat margins they're counting on to justify their valuations. Jerry is right about real men having Fabs.

To: xun who wrote (113546)	5/31/2000 1:53:00 PM
From: tejek	Respond to of 1577033

Yesterday he appeared on CNNFN and said sale of mid to high end boxes are doing better. He used a used-car analogy to explain why people now buy better computers than their first ones. $500-$1000 computers are still selling, but not like some people suggested would crush mid to high end. Link to the emachines difficulties, I think he makes a lot of sense. emachines has a niche no established box makers want to have, i.e., no money to make. panic, I am inclined to agree with you and Niles's analogy; however just when I think I understand the state of the PC market some new announcement is made that seemingly changes everything. I am at a lost to figure out what is really going on. ted