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

To: TechieGuy-alt who wrote (147696)	1/13/2005 9:15:56 AM
From: cruzbay	Read Replies (1) \| Respond to of 275872

I think that preventing them from "looking like a winner" takes back seat to crimping cash flow and hence AMD's ability to invest in their CPG infrastructure and R&D. It makes perfect sense. It is also interesting that Intel flash, which previously was broken out separately, was rolled into a larger group with profitable wireless chipsets around the same time as it was obvious that raising prices had backfired and that they had to slash prices and take losses if they were to regain share.

To: TechieGuy-alt who wrote (147696)	1/13/2005 10:48:10 AM
From: gzubeck	Respond to of 275872

The Truth at last...;>)

To: TechieGuy-alt who wrote (147696)	1/13/2005 3:46:44 PM
From: TGPTNDR	Read Replies (1) \| Respond to of 275872

TGA, Re: Intel's strategy is not to cause pain to AMD. It is to keep AMD from looking like a winner and with ~50 of AMD's revenues coming from flash and only ~10% of Intel revenues coming from Flash, flahs is a huge lever that Intel can use to gore AMD's profits- thus keeping AMD from looking like a winner- which AMD was more and more likely to do based on its CPG results.> That may be a secondary concern. Intel's primary concern is charges for under FABS/utilized equipment. They've stated that there's very little flexibility in the CPU pricing curve, not so in Flash which is all about price. Now that INTC seems to have some kind of handle, however nebulous, on producing P4s that are kind of competitive look for more capacity to switch to flash and prices to adjust accordingly. JIMHO, -tgp