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: Paul Engel who wrote (6503)	6/2/1998 3:10:00 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 6843

Paul, RE: "So why do AMD and Cyrix continue to lose money after they have succeeded in getting the PC OEMs to buy their chips?" Why do you keep asking such an easily answered question? <G> You know the real crux here isn't Intel making a profit. It's whether or not they will have to cut prices at a more accelerated rate, asia etc., glut the market and lose margins resulting in a slowing in earnings. i.e. the directions of earnings growth. Apparently the street figures if Intels earnings will suffer...AMD and NSM sure as heck arent going to make a lot of money either. The AMD vs Intel thing is a war. In all wars there are casualties on both sides. Jim

To: Paul Engel who wrote (6503)	6/2/1998 6:29:00 PM
From: Petz	Read Replies (3) \| Respond to of 6843

Paul, re:"So why do AMD and Cyrix continue to lose money" Its called "predatory pricing" by DOJ. If Intel is truly selling Celerons to Taiwanese boxmakers for $75 they are breaking the law by using their monopoly profits in one market (high end PC's) to attack a new market (sub $800 PC's) in which THEY ARE CURRENTLY A MINORITY PLAYER. Intel will have to prove to DOJ that they still make a profit on Celeron chips at $75, including fully burdened cost of production (COS, deprieciation, marketing, IR&D). Petz