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

To: f.simons who wrote (46545)	7/7/2001 8:42:18 PM
From: Dan3	Read Replies (2) \| Respond to of 275872

Re: because the results of the strategy have just been made painfully clear. I don't expect much from Intel for Q2. That will at least give AMD folks something to feel good about. That Intel did a Godfather deal to shut AMD out of the corporate market just before SKUs were to be announced is pretty much accepted. AMD, on the record, said they had corporate SKUs about to be announced. Then those were suddenly cancelled. AMD initiated the price war immediately following those events - sow the wind, reap the whirlwind. Intel made it clear that they would tolerate no alternative to an Intel monopoly. Fine - this is the result. AMD can keep going forever on $75 ASPs, including paying for new FABS. Intel needs twice that to keep going - we'll see what happens over the next 2 years. But don't put this all on AMD - it was Intel that threatened and bribed the OEMs to deny AMD access to corporate markets. AMD has no alternative now but to cut its costs and prices as low as possible and attempt to bleed Intel close enough to death to get Intel to ease up on the market pressure it has been applying - at heavy cost to Intel and AMD. Dan

To: f.simons who wrote (46545)	7/7/2001 8:43:08 PM
From: Win Smith	Respond to of 275872

AMD didn't send the IT industry into recession. AMD is making money on MPUs. I imagine Intel is still making boatloads of money on MPUs. Just not quite enough boatloads to completely hide the losses on all their other dubious operations.

To: f.simons who wrote (46545)	7/7/2001 9:20:26 PM
From: Joe NYC	Read Replies (1) \| Respond to of 275872

Frank, The marginal cost to produce additional CPU is so low that the price wars are inevitable as long as both vendors are at a rough technological parity, and there is sufficient capacity. I understand your frustration, since you are used to Intel having technological lead in a huge and growing market, where making CPUs was like printing money. However, this is not the norm in most of the industries. x86 market in Q1 and Q2 with Intel and AMD in their current shape (plus 3 or 4 other vendors thrown in) is more of a norm. This "blame Sanders" thing is ridiculous. Joe

To: f.simons who wrote (46545)	7/7/2001 9:37:07 PM
From: Jim McMannis	Read Replies (3) \| Respond to of 275872

RE:"Because AMD started the price war which has succeeded in wringing out almost all profits from an industry that was thriving just 2 years ago" I see, so in a perfect world there would be only one CPU manufacturer, one automobile manufacturer etc.? Of course we would own stock in those companies. The only CPU available would be a Pentium Classic and sell for $1000 a crack. All other entrants into these markets would be squashed immediately for the sake of the common "good"...LOL Jim

To: f.simons who wrote (46545)	7/8/2001 3:56:25 AM
From: Tenchusatsu	Read Replies (1) \| Respond to of 275872

Frank, <people on this thread think Intel started the price war> This is the same old RIDICULOUS (and I don't use CAPS lightly) debate that springs up every time AMD's earnings don't meet expectations. I've seen it pop up so many times before, I'm starting to feel like a grandfather (and I haven't even reached thirtysomething yet). I don't see how anyone should be blamed. This is just free-market capitalism at work. AMD doesn't have a God-given right to a minimum percentage of the market, and Intel should never expect a market that they currently dominate to stay competitor-free forever. Tenchusatsu