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

To: bacchus_ii who wrote (48628)	7/22/2001 5:01:08 PM
From: Paul Engel	Read Replies (1) \| Respond to of 275872

Re: "If AMD maintain 30% market share target, WS may accept we are in different situation this time. AMD have no choice to maintain 30% target. " Uh....before AMD can MAINTAIN a 30% market share, they have to GET a 30% market share. And they DO NOT have a 30% market share now.

To: bacchus_ii who wrote (48628)	7/22/2001 6:27:11 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 275872

RE:"As soon as 30% is reached then you only work to climb at top of ASP, not at bigger market share." Is 30% someones magic number? BTW, I agree with your assessment...share now, ASP later. Jim

To: bacchus_ii who wrote (48628)	7/22/2001 7:06:35 PM
From: tejek	Read Replies (6) \| Respond to of 275872

If AMD maintain 30% market share target, WS may accept we are in different situation this time. Gottfried, it appears to me that right now WS is more concerned with profit than market share generally. The markets are in an earnings driven correction, not one driven by market share. have no choice [but] to maintain 30% target. AMD does have a choice...stop the price war. Let Intel get back some of its market share. Sometimes it's a time to fight; other times it's a time to chill. Even at lost. If the bleeding is to long for AMD ... it will be too long for Intel also. Not necessarily....Intel has more cash resources than AMD. Last time I checked their cash reserves were well over $15 billion. Sanders has done this before.....he's real good at making the risky choices but when things get too dangerous, it seems he does not know enough to pull back...or at least that's the way it looks. AMD manages to survive but at a terrible cost to its balance sheet and its reputation. As I have written in siliconinvestor.com. "it's a lot easier to maintain profitability at 30% market share than at 50% or 75%. " Not if your ASPs are plummeting. Why do you think AMD warned that it may not make a profit next quarter? AMD did better when its market share was smaller and its ASPs higher. Price wars rarely do much good for either party but I think its AMD that will lose more once again. As soon as 30% is reached then you only work to climb at top of ASP, not at bigger market share. They can achieve that with no new FAB, juste upgrade and maybe outsource a little at IBM later, until profit come back and share price rise and then, use the shelved shares to finance new FAB. Again, I think its a dangerous time in the pc business to try to do anything other than keep your business solvent. Last quarter was the first quarter ever, I believe, that the pc biz did not grow YOY. To me that is sending a strong message to the pc makers and their component suppliers. I wish AMD would spend less time fighting Intel and more time looking for sectors to expand into away from the pc business. Intel saw the writing on the wall several years ago; it appears that Sanders has been unwilling to incorporate that kind of vision into his thinking. Once again its a critical time in AMD's history. ted