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

To: Road Walker who wrote (122614)	8/21/2000 4:04:30 PM
From: Joe NYC	Read Replies (1) \| Respond to of 1577067

John, But AMD is moving to a higher, smaller quantity price point, at the same time that Intel is increasing capacity at the same level. I am sorry, but I don't understand your whole line of reasoning. You say: - it is bad for AMD to sell in the high end because Intel is there - it is bad for AMD to increase production in the time of shortage, because Intel is trying to increase production as well - it is bad for AMD to increase clock speeds and cut the prices of slower parts because (I am not sure what your reason is) - it is bad for AMD to try to increase the market share (because the market share belongs to Intel?) My question is: Was Intel this considered when AMD had a weak hand? Will Intel do what you ask AMD to do next time Intel has in commanding lead? AMD's management has an obligation to do what's best for AMD shareholders, not what's best for Intel shareholders. As far as market share is concerned, it's not a function of history, or some incumbency. It is a function of every new chip sold. There may be some degree of loyalty and inertia for AMD to overcome in the short run, but in the long run it is irrelevant. How many Athlons can AMD make is an important question, how many can they sell is equally important. If you have a high end chip, it is not a concern. It can always be sold and displace the lower end chips. You have a problem if all you have are low end chips and the competitor is increasing output of higher end chips. AMD was in this situation many times. Now, for change, Intel is in this situation. Joe