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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Profits who wrote (28285)	2/3/1998 9:31:00 PM
From: emichael	Respond to of 1572384

This weekends newspapers advertised a majority of AMD chips in the computer ads. AMD is not a threat to Intel, but a small player in the industry and one that can return to profitability soon.

To: Profits who wrote (28285)	2/3/1998 9:53:00 PM
From: Bill Jackson	Read Replies (1) \| Respond to of 1572384

Profit; That is the thing. Price competition like this is most effective when the players are the same size, or when a big player can hit a single store with cut prices like Walmart does. The chip market is a level OEM market and so what would happen if I said I am making chips, I will make 1, and Intel cut the prices of all it's stuff to stop that 1 from selling?. That is what Intel did. AMD was too small. However the strategy might have long term success in stopping AMD from getting big later. However that area under the curve is gone forever and AMD survived. In a year or two the market might change and AMDs fortunes rebound due to unforseen things?? What if Apple and the power PC, touted to go to 1000 Mhz in 2-3 years is a success and IBM sells it cheaply, and they use Apples superior(it is no secret that Apples programs crash less and are easier to network and use, dumb fool marketing killed Apple) programs(if Apple ever gets off it's high horse and sells reasonably) Engineers at large might easily bypass that proprietary slot of Intel and find another way to do it. If that happens Intel will have an added cost and no gain, a no win situation. Even Intel can have a few bad years. Bill

To: Profits who wrote (28285)	2/3/1998 9:59:00 PM
From: Yousef	Respond to of 1572384

Profits, Re: "They shouldn't be concerned with AMD with only $2.5B in sales vs. Intel with $24B in sales. It doesn't make sense." I'm sure that was the same logic used by the "Big Three" US auto manufacturers when they first had the Japanese as competitors. It took many years and government intervention for Detroit to survive. Intel's "austerity" program (foregoing even more profits in the short run) should only have to last another 6-9 months. Remember Profits ... Only the Paranoid Survive !! Make It So, Yousef