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

To: TGPTNDR who wrote (182039)	1/2/2006 11:52:07 PM
From: rupert1	Respond to of 275872

tgp I think their business model is, temporarily, screwed I remember when DELL's market share and share price kept doubling in the 1990's. I was on the SI CPQ board a lot then and the hatred of DELL there was more visceral than it is here - probably because it was so single-minded. They did not have the schizophrenia of some on this board - hating DELL yet wanting to be embraced by it. In those years DELL honed its business model in full view of the market - it was a work in progress. I used to read the same criticisms of its hardware and service that I read on here. But it continued to grow exponentially while the virtuous HP and CPQ limped along and went under, respectively. DELL-ites were as self-righteous then as AMD-ites are now. I could not bring myself to invest in it. But hindsight teaches it would have been a wise. Its rate of growth has slowed more because of its size than from the markets reaction to defects in its products or services. Just as Intel is quite rightly rationalising diversification in order to pursue growth I think DELL will do the same. In the first place it has to decide how far it wants to go with some of the proposed new Intel lines and part of that calculation will be how far Intel intends to go with APPLE and other potential partners. But DELL is not going to ditch more than twenty years of structural business model development because AMD has recently gained a technological design advantage in some products and has just begun to prove that it can produce in volume. Even if DELL does decide that it wants to diversify and offer AMD based (and other products)it is going to have to unpick the stitches of its present model slowly and carefully.