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

To: wanna_bmw who wrote (51012)	8/14/2001 3:04:48 AM
From: Bilow	Read Replies (1) \| Respond to of 275872

Hi wanna_bmw; Re Intel's motivation. I think it's more a matter of fab capacity. (Warning! Depressing thought follows!) Intel has the fabs, and it costs pretty much the same whether they make product or not. They're way overbuilt, so they're cutting back production (in units) by converting to P4 (which uses more silicon). The real story of this industry is excessive production capacity. It won't be over until someone cries uncle. That means cutting capacity. On the other hand, the lower prices mean that consumers are going to buy more of a computer than they otherwise would of, and that will take up the production slack. But not without very significant price reductions. I don't know enough about the industry to guess what price that would be. -- Carl