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

To: Rachel M. Kuecks who wrote (29072)	2/27/1998 1:16:00 PM
From: AK2004	Read Replies (2) \| Respond to of 1573954

Rachel you are right about everyone loosing in oversupply. You are wrong about 50% margin. 50% margin is not a commodity margin if intel would decide to push it that far. Intel seems to think that if it makes commodity out of lower end which is a domain of cyrx and amd that would kill of the chances of amd/cyrx entering mid-range business. The only way it might have worked if AMD would not get any support for amds/compaq slot A. It looks like that was a very long shot at the expense of shareholders of both intel and amd and it misfired. IBMs deal is an instant recognition. While compaq support was not sufficient because compaq was biased to slot A, IBM validated AMDs approach. It is not even important now if cyrx would be using slot A or Slot 1/2. Negotiations were at works for few months and intel new of them. That why intel insiders are selling. And if you want to have some idea of what might happened to margins if intel would not give up the fair market share to amd (20%-30%) and to cyrx (10%-20%) and to idti (5%) just look at dram margins.