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

To: Joe NYC who wrote (126323)	10/17/2000 3:11:43 PM
From: tejek	Read Replies (4) \| Respond to of 1580430

Joe The price wars benefited Intel greatly. They did? How? Maybe initially....$$$ wise.....but why do you think they are behind the eight ball now? But until now, it was Intel waging the war. Other companies had only stick and stones to respond with. Now the tables turned, and AMD has some real ammunition. Why is it that you of all people would want AMD to unilaterally disarm, instead of conquering some market place, additional revenues and earnings, while the competitor is weak? Because AMD is in a better position but not a great position. I believe that the price war will be in the low end primarily and not the high end....and until the Duron has the right chipset (in volume), it will be vulnerable to the Celeron. But the bigger picture is that both companies profits and margins will be hurt....even the winner (if there is such a thing in a price war) will have a stock at best that is lethargic. Why as an investor would I want that? The better question is why are you pushing for a price war? Do you think AMD should just cut production, keep prices high and wait until Q3 2001 when Intel recovers? AMD's price cutting has been extremely aggressive...beyond what I think is necessary to steal market share....considering that there is little P3 volume above 900 Mhz. I believe that had they taken a more moderate cutting approach, they may have made their market share gains without arousing the gorilla.....in this way keeping their profits and margins up. Unfortunately, this is where Sanders machismo gets in the way....nobody is perfect. <g> So now we have given the analysts what they have predicted on a silver platter. And how many upgrades do you think AMD will get out of this price war? ted