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

To: Profits who wrote (29053)	2/27/1998 1:05:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 1573952

Profits - Re: " I would think that adding IBM as a foundry wouldn't be a surprise to you." Why didn't AMD do this last year? Last year Intel had a huge advantage in wafer fabs over AMD. Now, AMD will have to pay IBM's profits to IBM before they ever get a dime selling these K6's to their own customers. If AMD's customers didn't think AMD was a viable manufacturer of x86 CPUs before, this deal sure tells them they were wrong! And you can bet Intel's sales force will be making sure all Tier 1 and Tier 2 PC manufacturers know this fact - and the fact that any K6 bought from AMD helps IBM - a competitor to these PC manufacturers. If Intel drives down pricing enough, AMD may end up losing more money on this deal - as opposed to MAKING money. Last year, AMD didn't think Intel would drive down CPU pricing. Last year AMD found out they were wrong. This year may be no different. Paul