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

To: Maxwell who wrote (34457)	7/14/1998 12:56:00 PM
From: Joey Smith	Respond to of 1574485

re:I hope you know that it takes about 3 months to ramp the Mendocino. Also Intel margin will rise due to Xeon not Mendocino. That's what I meant..I'm more concerned about the overall product mix going forward. I still believe Intel margins will be going UP not down starting Q3, until they tell me otherwise. joey

To: Maxwell who wrote (34457)	7/14/1998 1:04:00 PM
From: Dale J.	Read Replies (2) \| Respond to of 1574485

Also Intel margin will rise due to Xeon not Mendocino. Maxwell and Jim, THis is where I think your train is falling off the tracks. <G> Mendocino is a response to AMD not an initial challenge. Mendocino is meant to stem the market losses away from AMD. Will the net profits from Mendocino offset the losses of cannibalizing the PII? I think so, but it doesn't have to. All it has to do is be a wash. Xeon will be the growth. From AMD's standpoint however, Mendocino is bullet headed their direction. Dale

To: Maxwell who wrote (34457)	7/14/1998 1:57:00 PM
From: Tony Viola	Respond to of 1574485

Maxwell, Re: "The bottom line is that can Intel grow in revenue. In the investor eyes, cutting cost to improve margin is just not like increase in profit from revenue increase quarter to quarter. You know what I mean." I know what you mean and agree that is the desirable way to grow profits (through revenue growth). However, there is another I company that has been doing it the other way (growing profit through cost cutting and buying their own stock). It's IBM, and their stock has been doing just fine lately. Re: " Also Intel margin will rise due to Xeon not Mendocino. Why? The reason is that Xeon is target for corporate and high end users and they have money to buy it." I think Intel margins will rise due to both Xeon and Mendocino, albeit more because of Xeon. Intel is now into "segmented markets", of which Xeon and Mendocino represent two. I believe Intel will use a lot of engineering, manufacturing and marketing muscle to make sure both of these segments pull their weight. Tony