Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (147965)	7/5/2002 4:11:48 PM
From: AK2004	Read Replies (1) \| Respond to of 1577900

Ten re: many argued that AMD would be less affected by the downturn than Intel. I do not recall every arguing it myself but I do recall the argument. The logic was solid but things are hard to predict on occasions. re: The lost share is a direct result of AMD failing to execute to their plan. it is more like a feather in cap for intel because it is mainly due to intel strategies. One thing to wonder about though is why intel paid so much to regain market share right before the release of both Itanium 2 and hammer. Itanium 2 sales would hardly be affected by gained market share so could it be that intel is concerned that hammer maybe very competitive against young but aging p4? Either way loss of market share is more of a concern than loss of revenue but things are hard to predict.... -Albert

To: Tenchusatsu who wrote (147965)	7/5/2002 4:31:51 PM
From: tejek	Respond to of 1577900

Albert, many argued that AMD would be less affected by the downturn than Intel. They thought people would be less willing to pay Intel's higher ASP and more willing to pay AMD's bargain-basement ASP. Ten, with a 49% GM I question whether INTC's ASPs are that much higher than AMD's. If that were truly the case, AMD would have gained market share this quarter. Instead, both lower ASP and lower share contributed to AMD's 33% revenue shortfall. Your scenario only considers the ASP side of the equation. The lost share is a direct result of AMD failing to execute to their plan. I am not sure that comment is all that fair. First of all, INTC has Dell its in back pocket........and Dell is the only PC maker selling more units and grabbing market share. And as Dan has pointed out, HP and CPQ have merged. Between problems arising from the merger and market conditions, both are selling less PCs. AMD stands to lose the most from that development. ted