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

To: jamok99 who wrote (48752)	7/23/2001 2:15:03 PM
From: tejek	Respond to of 275872

Jamok, I thought your post was a very interesting 'contrarian' view to AMD's present course. Some of the arguments on the opposite side seem rather compelling to me (e.g., it's hard to get decent infrastructure support without market share, which generates interest in producing supportive products). But I'd like to encourage you to continue posting your views on this. Thanks for the comments. Just for the record, I am all for grabbing market share when there is a good market in play but PC sales are slow right now and ASPs are falling. We are in the trough of the current PC cycle without a clue as to when the upturn will come.....all the current predictions notwithstanding. Please note that I said trough and not bottom...a bottom implies that the next direction is up; a trough says we are at bottom [we think] and are moving sideways. I don't think this is the time for a company like AMD to fight a price war when it still does not have a lot of depth to its financial resources. Sure you can gain market share by giving away product but is that what the game is all about. I don't think so. And even when you do, there is very little customer loyalty now. So, you've gained a customer only temporarily. The game is about making money on a regular basis, not once every ten years.......and not about flipping Intel the bird as rewarding as that can be.<g> That's where Jerry gets confused....he forgets its about the money. And don't get me wrong, I don't think that AMD should go all corporate and bean counter...I just think there is a time to gamble and there's a time to bide your time. From what I have read lately, AMD's infrastructure is still not where it needs to be. This is the time to get those ducks improved and lined up for the next cycle upturn. And again, AMD really needs to be looking for other market niches besides flash and CPUs. Fighting for market share over the next 50 years in order to grow your business is not my idea of a successful company. So much for my contrarian views...<g> ted

To: jamok99 who wrote (48752)	7/23/2001 2:42:33 PM
From: andreas_wonisch	Read Replies (1) \| Respond to of 275872

Jamok, Re: I thought your post was a very interesting 'contrarian' view to AMD's present course. I agree. The old "market share at all costs" strategy haven't worked when AMD had a superior product (Athlon vs. Coppermine) and I doubt it will work now when they are behind in the clock-speed race. IMO AMD needs a) to grab market share where it matters (i.e. in the business market; retail is far too volatile) and b) to market their products in a way that allows them to get reasonable ASPs. But I doubt that anything will change as long as Sanders is in charge. Let's hope for AMD that he really retires at next year's shareholders' meeting. Andreas