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

To: Joe NYC who wrote (201822)	6/13/2006 6:32:26 AM
From: Dan3	Read Replies (2) \| Respond to of 275872

Re: At about the same time, AMD increased prices of X2s slightly. I did not like that stunt one bit. It's looked to me that AMD's big problem has been coping with rapidly increasing demand. Their risk has been that they would appear to be an unreliable supplier. Their recent strategy appears to have been successful and they were able to supply the demand (at the prices they quoted). Intel's big problem has been coping with rapidly decreasing demand. They've had to cut prices and have damaged the Pentium and Pentium M brands. Now they are going to try to build Core and ViiV as replacement brands and leave AMD tied to the Celeronized Penium brand. It costs Intel (and anyone else) a lot of time and money to build a brand. Right now they're starting almost from scratch, again. I think AMD has been doing a spectacular job of navigating a treacherous pricing environment. They're still in the middle of a scorched earth price war that's taking place in an overall dropping market, but the job AMD has been doing has been terrific. It's still going to be very, very, tough for them, going forward.

To: Joe NYC who wrote (201822)	6/13/2006 7:25:31 AM
From: niceguy767	Respond to of 275872

"Those price cuts were inevitable response to Intel price cuts. AMD has probably waited too long with them." AMD probably figured INTC would come to their senses. How could AMD management know that INTC management figured if INTC's going down, then they're taking as many with 'em as possible...You know, the "we'll show everybody to chose not to comply with INTC's illegal tactics" what will happen, even if we do destroy ourselves. AMD unfortunately is playing in a space with a monopolistic psychopath where the psychopathic mindset is if INTC can't win then nobody wins ;-) This game is far from over as if AMD can deliver the decisive counter punch, INTC'll never recover to monopoly status...Let's just wait and see how AMD responds at the 65nm node. Until then, it does look from my vantage point that the downward trend for both will AMD and INTC will continue.