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

To: Harvey Allen who wrote (37217)	4/24/2001 5:55:36 PM
From: niceguy767	Respond to of 275872

Harvey: "Intel can drop prices to compete as much as they want if they still have profit on the other segments." Mighty big "if" statement tacked on to the above as there is just no way INTC avoids red ink in Q2 and perhaps for a succession of quarters after Q2...INTC just no longer has the product lineup that can demand premium pricing and P4 just may not fly at the expected heights!!!

To: Harvey Allen who wrote (37217)	4/24/2001 6:01:09 PM
From: dale_laroy	Respond to of 275872

"Intel can drop prices to compete as much as they want if they still have profit on the other segments." But AMD does not have to be the one to knock the crap out of Intel in these other market segments. If AMD were to license IBM to produce and market Mustang under the IBM brand, including in the license the flexibility for IBM to shrink the Mustang design and implement it in SOI, they could leave it entirely up to IBM to knock the crap out of Intel's server market. Not that I recommend this particular strategy. Instead, AMD should strike a deal similar to the 6x86 deal that Cyrix had. In exchange for low foundry costs to AMD, IBM would get half the Mustang production to sell under the IBM brand. Corporate buyers, knowing that IBM is fabbing both IBM and AMD branded Mustang processors would probably not insist on one brand over the other. Then, having snuck into the server market under IBM's wing, AMD would be positioned to transition their server market to Sledgehammer.