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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: niceguy767 who wrote (30898)	3/9/2001 1:58:35 AM
From: peter_luc	Read Replies (1) \| Respond to of 275872

Niceguy, "If I may be so bold, I might suggest that server, mobile and workstation demand might well be down owing to deferred purchasing decisions by longstanding INTC customers" I think so, too. There are certainly various reasons for the slowing demand in the corporate sector, like the general economic situation and recent year2k purchases. However, another factor could be the fact that there is no compelling product line in the corporate space right now. IT managers should know that a Pentium III 800 or a Celeron is not a very competitive processor any more, so why should they buy them? Besides, IT managers should be well aware that the P4 is overpriced and offers no benefit in standard applications. So here again is the question: Why should they buy? IT managers may not yet fully trust AMD processors or VIA chipsets. (Maybe they would very well trust them if the big tier 1 vendors finally offered an AMD office line!!) But that does not make the aging Pentium III/Celeron more attractive. This wait-and see-approach will last until a really convincing new product will be available. Some office PC vendors might eventually recognize what is going on and offer a Palomino office line. The same might be true for the server market. Imagine an IT manager who has an Athlon 1200 at home. Will he rush to buy a highly overpriced XEON 700 for his company?? No way, for sure! If we only had old Pentium III/Celeron processors in the consumer market there would be stagnation, too. VIA owns its current growth only to the AMD platform. Take the 1Ghz+ Athlons out of the consumer market and see what happens. I bet the development would be similar to the current situation in the business sector. Besides the consumer market only the mobile sector seems to do well. The reason is simple: In this sector, Intel offers a very attractive product. They are getting rewarded for it and it is well deserved. The current slowdown in the corporate sector represents a big chance for AMD for two reasons. On the one hand, PC vendors will finally have to rethink their product mix in this sector and offer a more attractive solution. On the other hand, every deferred corporate PC purchase today (whith AMD not yet being a player there) may well be an AMD purchase tomorrow when AMD processors (Palomino) will finally be offered for corporate customers as well. Peter