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To: niceguy767 who wrote (35799)	4/15/2001 12:18:21 PM
From: dale_laroy	Read Replies (1) \| Respond to of 275872

"Flat to down in Q2 implies 25 million assuming no loss in market share, a hugely incorrect assumption, imho" Which is hugely incorrect, flat to down, or no loss in market share? Q2 will see flat to moderately rising volume, with sightly rising Intel market share relative to AMD, but possibly losing overall as Via enters the picture. Hopefully, AMD will be stockpiling Palomino (both mobile and desktop) in Q2 in preparation of an major Q3 assault. Intel's big problem in Q2 will be very rapidly eroding ASP and margin. AMD may be able to take some mobile Celeron market share with the mobile Spitfire, but mobile Palomino/Morgan will not reach a significant impact until Q3.

To: niceguy767 who wrote (35799)	4/15/2001 12:32:27 PM
From: Dan3	Read Replies (2) \| Respond to of 275872

Re: forecasted INTC results to be reported Tuesday... The thing to keep in mind in any capital intensive industry is that there are a lot of opportunities for accounting games. When the true value of your assets depreciates very quickly, losses can be masked by not accounting for that depreciation - unless the day comes that those assets must be liquidated, and they turn out to be worth pennies on the book-value dollar. For last year, AMD showed undepreciated plant and equipment valued at $2.6 Billion, an increase of $.1 from the previous year. Intel showed undepreciated plant and equipment at $15.0 Billion, an increase of $3.3 Billion. Yet Intel has come into the year with an urgent need for major capex, while AMD is just completing a huge capex program and can scale back its capex, near term. Undepreciated plant and equipment is a deferred cost - it represents money you spent but didn't figure into your costs. By calling more and more of its expenditures capex and not depreciating its old plant, Intel is able to greatly reduce paper costs and continue to show operating profits even when it is losing $Billions. By the way, you can find Paul actively posting on the Intel thread at Subject 549 if you want to discuss anything with him. Regards, Dan