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

To: Sarmad Y. Hermiz who wrote (193949)	4/16/2006 9:49:24 AM
From: combjelly	Read Replies (1) \| Respond to of 275872

"That Intel's ability to stop AMD's market share expansion will evaporate ?" It hasn't been working so well so far. Do you expect it to get better?

To: Sarmad Y. Hermiz who wrote (193949)	4/16/2006 10:30:46 AM
From: niceguy767	Read Replies (1) \| Respond to of 275872

"And the conclusion to draw is what ? " Well, AMD's gross margin increased to 58.5% in Q1 in a seasonally soft quarter and a quarter in which INTC may have had a fire sale on its bloated Q4 inventory. Wonder if INTC will post a similar firming in its gross margin from its 61.8% posted in Q4? By the way, shouldn't INTC's gross margins be much, much higher than AMD's given their much higher pricing structure and their much more efficient fabs? ;-) ( I mean how in the heck is INTC going to fight a price war, if their Q1 gross margin, were to slip down to 58.5%?)

To: Sarmad Y. Hermiz who wrote (193949)	4/16/2006 12:27:08 PM
From: hmaly	Read Replies (1) \| Respond to of 275872

Sarmad Y. Hermiz Re..And the conclusion to draw is what ? That Intel has lost at least part, if not all of its monopoly power and pricing. Companies that have lost their monopoly, etc. railroads before cars and trucks, airlines before deregulation, IBM, AT&T, F, now GM, ; have all had a hard time adjusting to the new realities. Monopolies allow you to sustain business practices, you can't sustain under intense competition. You must adjust to become meaner and leaner. A lot of people think that Conroe will be Intels salvation. Its possible, but not likely, because even if Conroe is as dominent over its competitors, as the original Pentium chips, it would be unlikely that Intel would ever regain the same monopoly powers, because no matter what, AMD's chips will still be good enough for most applications, and will be competitive in most segments, if not all. To adjust to the new realities, Intel needs a major restructuring, not just simply changing around a few people. We haven't seen that yet. That Intel's ability to stop AMD's market share expansion will evaporate ? It certainly will take different methods to stop AMD's market expansion. The old price cuts in the low end market segments, won't do it anymore. Also, both China, and India, are developing their semi industries, and both have great, inexpensive talent, combined with lots of money from trade inbalances to draw upon. To that end AMD is more used to the competition that Intel.