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

To: AK2004 who wrote (51786)	8/20/2001 6:41:45 PM
From: wanna_bmw	Read Replies (1) \| Respond to of 275872

Albert, Re: "are you joking?" You'll wish it were a joke after this quarter. Even you admit that AMD needs the market share at this point. Why else would they drop their flagship processor down to the $100 range, if not to desperately sell off whatever volumes they can? And now they are losing the best opportunities to increase their market share, what with IBM and MicronPC backing out on them. Now they'll have to get double the design wins from the tier-3/4 Mom&Pop Shops if they want to continue their climb. On the other hand, if they start losing their market share back to Intel, the lower volumes will really put their revenues in the gutter. Of course, as I'm sure you'll point out, the same can be said for Intel (which is basically what I said in my last post). Lower market share and lower margins in a market where demand is stagnant is bound to hurt either company. The question is, who will lose market share to whom? wanna_bmw

To: AK2004 who wrote (51786)	8/20/2001 7:12:42 PM
From: Road Walker	Read Replies (1) \| Respond to of 275872

Albert, In a commodity business, the low cost producer wins. In a value added business, marketing wins. AMD is acting like a low cost commodity producer in a value added business. Selling more stuff at a loss is a dead end business plan. It worked for a year when there was a part shortage. The fixed cost issue, assuming less units, needs to be overcome with higher GM. That's the only way AMD will see equity appreciation. If they are unwilling or can't accomplish a profitable product niche, sell the stock and move on. There are over 4000 stocks traded on the Nasdaq. There have to be a few that understand basic business principles better than AMD. John