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

To: Jim McMannis who wrote (82966)	6/19/2002 4:26:26 PM
From: wanna_bmw	Respond to of 275872

Jim, Re: "AMDs biggest problem is Mhz and no price premium because of it." No, megahertz is just one of AMD's problems. AAPL only manages 1GHz in their machines, yet they still manage to be profitable. If AMD actually did what they said they would, and get together a True Performance Initiative, then they wouldn't have to deal with the QuantiSpeed disaster, which is one of the reasons why they will have no credibility when it comes to the performance of their chips. AMD's real problem is their inability to market an original message for their product. QuantiSpeed only leverages off of the Megahertz Sells mantra, as you well know, so it only lends credibility to Intel's cash cow. If AMD had the equivalent to a "supercomputer on a chip" campaign, I think they would be far more successful selling their products at higher prices, and thus my original point on profitability over market share makes more sense. wbmw

To: Jim McMannis who wrote (82966)	6/20/2002 7:06:05 PM
From: Joe NYC	Read Replies (1) \| Respond to of 275872

Jim, AMDs biggest problem is Mhz and no price premium because of it. AMD has ModelHertz, and as long as there was a performance parity, AMD did fine (in Q4 and Q1). But performance parity was lost when Intel introduced 512K L2, and continued healthy MHz ramp, while AMD is still without 512K L2, and MHz ramp is slower, obviously resulting in loss of competitiveness. To me, the worst part is that the silicon area saved by smaller CPU die of silicon (of Tbred), let's say 10 to 20%, reduces CPU prices by much more than 10 to 20%, so on revenue side, AMD ends up being a loser, as we see have seen from the latest announcement. On top of this, AMD will at present rate of sales of CPUs have spare capacity, once the conversion to .13u is fully in place. Hopefully, Barton will be available for sale at that time. Joe