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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (164797)	5/2/2002 12:34:11 AM
From: Monica Detwiler	Respond to of 186894

AMD is a lot more efficient than Intel. AMD is indeed more efficient than Intel at losing money, slipping product launches and otherwise being a second rate wannabe CPU company.

To: Dan3 who wrote (164797)	5/2/2002 3:23:34 AM
From: Tenchusatsu	Read Replies (1) \| Respond to of 186894

Dan, if AMD is a lot more efficient than Intel, why does Intel have better profit margins, better ASP, better reputation for delivery, and much more consistent earnings than AMD? The answer will continue to elude you. Tenchusatsu

To: Dan3 who wrote (164797)	5/2/2002 9:31:12 AM
From: Tushar Patel	Read Replies (2) \| Respond to of 186894

AMD supplies 20% of the CPU market and about 15% of the flash market with costs of $900 million per year There you go again. AMD supplies 20% of CPUs that on the average sell for around $90. Intel supplies 80% of CPUs that on the average sell for at least 50% more. In other words, while AMD and Intel both make CPUs, AMD product is currently valued by the market as an inferior or less desirable product by the only metric that matters - what does it sell for? Sorta like a Mercedes may cost more to make than a Chevy. Both make cars but one costs more to make than other. So what? According to Andy Bryant, Athlon is now competing with Celeron. That is the best product line AMD makes now competes with the cheapest one Intel makes. Sorta like the high end <insert your favorite low quality car line> competing with the low end Mercedes. Metric of efficiency? The one that I care about is how much profit is made per dollar of revenue? Oops, AMD doesn't have profit. So Intel wins again. Oh one more thing. Intel's gross margins are increasing and according to Andy Bryant are likely to continue to increase for much of the year.