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

To: StockMan who wrote (37229)	9/20/1998 12:25:00 AM
From: kash johal	Read Replies (1) \| Respond to of 1571808

You are right, However Intel has responded to the AMD challenge with a scorched earth policy on pricing. They have tried to keep a speed lead while bombing the prices on lower speed grade parts. Either they will respond again to AMD by slashing 350/400 Mhz speed grade prices to attempt to keep AMD losing money or they will keep prices higher and see AMD rear it's ugly head as a real threat. A profitable AMD with K-3 and K-7 onslaught in Q1 99 has to give them fits. By the way 350's seem to be in plentifull supply right now. By the way I am not suggesting that the speed bump is easy or trivial. But AMD's spokesperson seemed pretty adamant about 400Mhz in Q4 in production. I think Intel has pushed the 0.25 process as fast as it can go - 450Mhz. AMD's 0.25 may only get up to 400Mhz (due to slower fets). That's the reason there have been no speed bumps on Intels chart for rest of year. They weren't planning on 0.18 micron till 2H 99 and now they are talking about Q2 99. I think they agreed with yousef and AMD would not even get to 350Mhz this year. That's why the Mendocino at up to 333Mhz was targeted at AMD to blow them out of the water. If AMD starts ships over 1M 350/400 K6 in Q4 this should give them a blended ASP of $120-150 on a total of 5Mpcs this should give them a stunning profit in Q4. If they get to 4M in Q3 and I think they will be close then a breakeven is possible in Q3. I suspect that AMD will pre-announce at end of qaurter how they did for quarter. Or they may use the notebook announcement to talk up Q3. Should be a good week for AMD unless market gets dumped again by Monicagate. Regards, Kash