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To: Elmer who wrote (156762)	1/24/2002 3:45:52 PM
From: Joseph Pareti	Read Replies (2) \| Respond to of 186894

some of you may be impressed by the AMD "6 am" evangelists" :-) athlonxp.amd.com if so, keep in mind some key AMD business tenets: - Sell at a loss and make up for it on volume - Jerrihad Fatwah Sanders is good at using other people's money (tm Jerry Sanders, AMD CEO and Hector Ruiz "leverage the ALREADY made investments" :-) - A Thoroughbread at Quanti 2000+ is only about 1660 Mhz - right? And this is a 0.13 micron device? If true, AMD's process problems are in a world of QuantiHURT !! Anyhow, enjoy reading the AMD whitepaper if you don't believe the "other front's" fud :-) DISCLAIMER : Courtesy of Paul Engel et al.

To: Elmer who wrote (156762)	1/24/2002 3:48:47 PM
From: wanna_bmw	Respond to of 186894

Elmer, Re: "they're essentially running at full capacity now and losing money. Just how do you improve on that with falling ASPs? The competition is shipping high volumes of high APS parts and AMD is once again forced to compete on price. Price competition has always meant red ink for AMD." Clearly, AMD is betting on .13u as offering cost and volume benefits to hold them over this year, possibly allowing them to break even in the second half. After that, they are again putting all their eggs in one basket to prepare for the Year of the Hammer. They are betting that Hammer has a high enough performance benefit over Northwood that they can sell it for a high premium, to make up for the fact that SOI will be difficult to ramp, and difficult to control costs. They will maintain unit volumes by using foundries, and probably lose money on every Duron they sell. That's ok, though, since making money is still not AMD's #1 priority. wbmw

To: Elmer who wrote (156762)	1/24/2002 3:50:05 PM
From: TimF	Read Replies (1) \| Respond to of 186894

I didn't say they could sell more without falling ASPs atleast not without a pickup in the market. However the original statement made it seem like AMD was selling chips for less then they cost to make. AMD is cutting costs, and soon will start to roll out .13. As long as the market recovers at all from here AMD should start making money again. The only way I see them as not making money is if the economy goes nowhere and AMD and Intel's expanded capacity results in another price war. If that happens I could see both AMD and Intel losing money. Tim