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

To: Dan3 who wrote (82587)	6/15/2002 4:32:55 PM
From: Jim McMannis	Respond to of 275872

RE:"Jerry saw it coming, and AMD has been, almost frantically, cutting costs for more than a year - while Intel raised its cost base with a huge FAB expansion program." Or someone convinced Jerry that belt tightening was necessary. If AMD can survive with a ASP of $65 then what is Intel going to do with all that FAB capacity? Hummm... If Opteron takes the cream off the top of ASPs then Intel may be forced to downsize some salaries and FABs despite being pretty lean as large companies go... We will know in the fullness of time-(Ed Hart) Jim

To: Dan3 who wrote (82587)	6/15/2002 4:36:42 PM
From: Bill Jackson	Read Replies (1) \| Respond to of 275872

Dan, You have highlighted Intel's vulnerability. Price competition works best between equals, as the cuts hurt both the same or with a tiny competitor with 5% or so. AMd with 30% is able to ccompete in all but the top serverspace and thus the Intel ASPs are hurt in almost all sectors. I bet this second quarter will see Intel in the red. bill