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

To: Joe NYC who wrote (122610)	8/21/2000 3:04:27 PM
From: Road Walker	Read Replies (1) \| Respond to of 1577024

Joe, re: "But AMD is not talking about doubling the output. If the statements about Q3 and Q4 are true and AMD sells 7 million and 9 million chips, the market share numbers will not change very much. 7 million is almost no change over Q1/Q2 and 9 million basically is a response to an increased seasonal demand." But AMD is moving to a higher, smaller quantity price point, at the same time that Intel is increasing capacity at the same level. The problem for AMD is that every additional chip they try to sell at the high end, that's one less for Intel. Say what you will about Intel, they don't give up market share easily. And again, the sales will be finite. How many chips destined for high end computers did AMD sell in the 3rd and 4th quarters last year? How many will they manufacture this year? Will the OEM's give all those models to AMD, will the retailers give all the shelf space to AMD based models? And will the consumer choose AMD over Intel? AMD is throwing a lot of product at a high end retail marketplace that may be soft. How many Athlons can AMD make is an important question, how many can they sell is equally important. The recent price cuts could be an early warning that the second question will be more important. John