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Technology Stocks : Advanced Micro vs Intel (AMD / INTC) -- Ignore unavailable to you. Want to Upgrade?

To: inex who wrote (2541)	1/10/2008 11:34:02 AM
From: Elmer Phud	Read Replies (1) \| Respond to of 2596

Just because AMD is not in a position to compete in the high end has no bearing on whether or not they should strive to capture marketshare. Do you realize you're describing their current strategy? That's what they've been doing and you can see what it's done to their bottom line. They have only 1 fab and an oversized, bug ridden, low performing, low yielding, power hogging die. Their other 65nm products are now lowend where ASPs are commodity levels. It will be 2009 before the other fab is converted. Just what market segment do you think AMD can attack where Intel doesn't have a better and cheaper alternative in almost unlimited volumes and lower cost? Then there's the issue of credibility. What customer is going to believe AMD's assurances that they can deliver a new product on time and in volume? One has to go back into the historical archives to find a statement from AMD that turned out to be true and a schedule they actually met. Who is going to commit a new product line to a company that can't be believed while their competition designs around Intel and has a higher performing, lower power product shipping while you're still waiting for bug free samples?

To: inex who wrote (2541)	1/10/2008 2:50:32 PM
From: chipguy	Respond to of 2596

Now, with products which don't compete directly with Intel, AMD can in fact wage a price war in the CPU market and hope to at least break even. ROFL. There are a few classes of chips that sell in higher volumes than x86 processors and a few classes of chips that sell at higher gross margin $ than x86 processors. But x86 processors are far, far, away in a class entirely on its own in combining the two - volume times margin $. That is why Intel is the biggest, and by a long shot, the most profitable chip company in the world. The idea that AMD can sell something else in sufficient volume and at sufficient margin to subsidize its losing battle against Intel in x86 processors is so ludicrous it is almost beyond belief that any thinking person would suggest it.