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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (3445)	6/6/2002 7:14:16 PM
From: nsumir81	Read Replies (1) \| Respond to of 95617

Someone talked of production yields. No matter WHAT, they would not cut prices UNLESS there was a lack of demand. This is what happens when demand drops. They cannibalize each other for market share. Cost-cutting may go on but that is necessary anyway.

To: The Ox who wrote (3445)	6/6/2002 10:19:35 PM
From: robert b furman	Read Replies (1) \| Respond to of 95617

Typical squeeze your competitor (AMD) and gain back market share. What they don't say is with 300 mm wafers you must have big volume.There really are just a hand full of companies that have the volume usage of their chips to justify 300mm. A very unwritten feature of 300mm wafers is you have to be able to sell them and not build inventory. Sources vary but 300 mm wafers yield 225 % more chips.Not all manufacturers can absorb that yield improvement. If Intel drops prices they may get volume (market share) that enables the yield increase. If they gain market share - they could well pick up the margins with the volume benefit. It is a high class gamble and AMD is about to go thru Boardwalk and Parkway with Hotels on them. Predatory pricing for longterm marketshare with a shortterm hit on margins - that recover with volume. Very aggressive ?? Bob

To: The Ox who wrote (3445)	6/7/2002 7:58:04 AM
From: orkrious	Read Replies (1) \| Respond to of 95617

What I find a bit humorous about the INTC release is that they point to lower margins. Well, duh, you just cut prices across the board on your products. that's only half the story. they've been building inventory which allowed them to spread fixed manufacturing costs into more units. Now as the real story comes out that demand sucks profits are really going to go in the sh*tter. Does anyone else now agree the sept lows are going to be broken on the equips?