Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AMD:News, Press Releases and Information Only! -- Ignore unavailable to you. Want to Upgrade?

To: Harold Engstrom who wrote (5302)	3/27/1998 1:28:00 PM
From: Time Traveler	Read Replies (1) \| Respond to of 6843

Harold, I agree with you that Intel's near term profit margin is eroding, but you made it sound like a catastrophic decline, in which I disagree. I also acknowledge that Slot-I is proprietary, but not in the implication which plagued Apple and IBM a few years back as you have claimed. I do see that processor power has advanced tremendously in the past few years, but there are still room for improvement. And since the number of producers of x86 can easily be represented by the fingers of a normal hand, I disagree with you that x86 market is becoming a commodity. Despite the threat of AMD's competition, Intel is still making a lot of money every single quarter, hand over fist. It is AMD who is the loser in this case. I sincerely thank you for caring about my meager investment, and I do hope yours does well, too. John.

To: Harold Engstrom who wrote (5302)	3/27/1998 10:24:00 PM
From: Paul Engel	Read Replies (3) \| Respond to of 6843

Harold - re: "t Intel's margins are not coming under some serious pressure. " ASP's are coming down - and that applies for Intel, AMD, NSM and IDTI. However, Intel can address these declines with cost reductions. New processes with finer geometries result in smaller die sizes. High yields that are getting HIGHER also contribute to continuous cost reductions. Three fabs are in production on 0.25 micron processes and the 0.18 micron process will be ready in the fall. AMD, Cyrix and IDT all have to go to IBM to get their wafers made which will increase their costs - IBM must pay for their equipment and production costs and generate a profit on those wafers -- and decrease their margins (AMD, Cyrix and IDT) even further. Paul