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

To: Maxwell who wrote (29045)	2/27/1998 12:48:00 PM
From: Paul Engel	Read Replies (2) \| Respond to of 1573420

Maxwell - Re: "How AMD gains from the AMD-IBM deal:" Your post is well thought out and articulated. However, you assume only the Best of situations. If Fab 25 is truly a MegaFab, why does AMD have to use IBM to bail them out? Thius deal confirms Austin is a MegaFlop. That will impact AMD's financials very soon (it already has, actually). Don't forget - AMD's customers and potential customers are now in competition with AMD's supplier. Paul

To: Maxwell who wrote (29045)	2/27/1998 3:33:00 PM
From: Time Traveler	Read Replies (2) \| Respond to of 1573420

Maxwell, Here are a few comments to your post: 1. I thought AMD is already in the "major league" dealing with Intel. Wasn't it AMD that caused Intel's deep price-slash on their Pentium line CPUs? With IBM manufacturing K6 half a year down the road, AMD is going to lose a big customer! Remember you pointed out how important of keeping a customer from our DEC-Intel exchange of posts? In half a year, how much of a presence do you think K6 will command? I say P-II would be dominating, and Merced would just be right around the corner! 2. I disagree with you about sending the credibility message to the box makers. This would not make any difference. A very remote similarity would be the Power PC fiasco of the Big Three (IBM, Motorola, and Apple). 3. Compaq cannot afford to throw any more money trying to change the course of the x86 market. The recent inventory problem does re-iterate how successful of an approach executed by Dell. In order to stop losing ground to Dell, Compaq would have to adopt some of Dell's strategy. 4. May I remind you that IBM's copper technology is still a laboratory curiosity. This company just likes to brag about it while other major players are just keeping quiet. 5. Now, with AMD losing a big customer and this customer becoming a competitor, I do not see how AMD is going to be profitable! Conclusion: AMD and IBM would be beating on a dead horse. The future is in Slot I, Slot II, and Merced! Pentium MMX type processors are phasing out just like the classic Pentium, x486, x386, x286, 8086, and 8088, especially very much the case in half a year! John.