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

To: TimF who wrote (149194)	8/7/2002 2:08:13 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1575612

Tim, it's simple. My belief is that desktop ASPs will continue falling to the point where the profit margins will be similar to that of VCRs or TVs. One of two things can break this trend: a new killer app or an increase in user-friendliness. Unfortunately, neither is on the horizon. AMD cannot hope to compete against Intel in desktops anymore. Intel will drop prices in the market segments that AMD competes in while firming up prices in other segments. It'll be even worse for AMD to try and cover more segments than they can realistically handle, for they will become the master of none, and low ASPs will once again kill them off. The one segment that still holds hope for AMD is servers and workstations, where the profit margins are still very high. They are pushing some very ambitious server designs for good reason, even though they still have no Tier 1 commitment. And they are braving larger losses and increased R&D even in this tough time for a good reason. It's all about survival and reading the handwriting on the wall. Tenchusatsu