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

To: wanna_bmw who wrote (82927)	6/19/2002 1:59:39 PM
From: niceguy767	Read Replies (1) \| Respond to of 275872

wannab: "The airlines are all on the verge of bankruptcy. You want AMD to be like them?" Yeah,wannab, that's exactly what I implied and that's exactly what I want...love your logic, sometimes... "Chomolungma is right - AMD's business model is to gain market share by lowering prices, and stretching profit margins thinner and thinner. They have twice as much market share as they did in the K6 days, and they are still losing money by the barrel full. Sure, they have the potential to gain more in market share, but if that's all you want, then enjoy the losses!" Once again, (and it's not as difficult, or twisted, as you make it to be), the point I'm making is that combined AMD and INTC market caps are about $133 billion...If AMD had 50% market share of a $35 billion (revenues) pie, I doubt very much that the current market caps of $130 billion for INTC and $3 billion for AMD would prevail...Whether or not the combined market caps would be greater or less than the existing $133 billion market cap is very much a function of the economy...I can't like you conclude that the combined market cap would be lower than the existing $133 billion...In fact, in a strong economy, I suspect that even with a 50% market share for each AMD and INTC, that combined market cap might be greater than $133 billion...In any event, I feel very comfortable in the assertion that, given 50% marketshare, that AMD's market cap would be significantly greater than $3 billion and that combined market caps would exceed by a large measure, the $6 billion implied by your ridiculous comment!!!

To: wanna_bmw who wrote (82927)	6/19/2002 4:34:04 PM
From: Petz	Read Replies (2) \| Respond to of 275872

AMD's business model is not to lower ASPs but to raise them by selling the highest performing microprocessor on the planet at higher prices ($150-$300), and to gain market share by selling inexpensively produced TBreds at large discounts to the equivalent Celeron. This model doesn't work when their top processor is slower than Intel's and way lower MHz. As in Q2 and Q3. Petz