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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (134735)	5/11/2001 6:35:29 PM
From: TimF	Respond to of 186894

Ha Ha. Intel shareholders don't seem to mind losing $Billions in the communications business in an attempt to kill Intel! They are losing those billions out of what would be a larger profit. I think Intel shareholders would complain a bit more if Intel started to post quarterly losses. AMD takes a few points of market share and look at Intel's response. Increased capex, increased marketing, lower prices, and they won't even break a sweat. By the end of the Christmas season, Intel will have gained back those market share points. I don't think so but I guess we will find out later this year. Tim

To: Road Walker who wrote (134735)	5/11/2001 8:52:05 PM
From: Dan3	Read Replies (6) \| Respond to of 186894

Re: Intel can tighten the screws on pricing anytime it wants. And the shareholders will tolerate it. Last quarter was one of AMD's most profitable in its history, and it made those profits while increasing its market share by about 20%. Last quarter was one of Intel's least profitable in years, and at the same time it was losing profits, it was losing market share. Intel's shareholders bolted, with its per share price going from 3 to 4 times that of AMD, to the same price. At the present rate, AMD shares will going for 3 to 4 times what Intel's are selling for by 2003. All this happened as AMD had to withdraw from the very low end market due to platform costs and it had to withdraw from the mobile market, due to nothing to sell. Going forward, AMD reverses the platform disadvantage with a less expensive chipset/memory/motherboard than Intel and it looks like AMD will soon be back in the mobile business. For the first time in many years, AMD is also providing competition in the mid-range server market. All these gains for AMD and losses from Intel were made while AMD was in the horrible position of being able to compete in only one sector of the CPU market while Intel was free to make its profits in all of the remaining sectors and use those profits to subsidize the limited share of its sales that faced competition from AMD. The easy days for Intel end next week - that 80% profit drop you saw last quarter was before Intel was facing any competition in the mobile or SMP markets. Last quarter will be remembered as the good old days for Intel. Intel is in the untenable position of each CPU sale having to support about $125 in overhead costs. AMD's overhead costs are about $25 per CPU. Now that they've lost their ability to charge monopoly prices for mobile and SMP CPUs (the first 80% of their profits went when they lost the ability to charge monopoly prices for desktop CPUs) they aren't going to be able to make any profits at all - possibly for many years. Dan