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

To: Petz who wrote (38055)	10/3/1998 6:32:00 PM
From: StockMan	Read Replies (1) \| Respond to of 1572719

P, Re -- Take a look at Computer Shopper and you'll notice that AMD has saturated the mail order market as well AMD can only produce 3.5M chips. How many do you think they can sell. Furthermore, the MORE AMD produces/SELLS the more quickly they'll run out of cash. If they produce/sell a lot more, one wont have to wait for AMD to die a slow death.

To: Petz who wrote (38055)	10/4/1998 10:40:00 AM
From: herb will	Respond to of 1572719

Petz Re: " Take a look at Computer Shopper and you'll notice that AMD has saturated the mail order market as well" Well, Petz, there appears to me to be a dearth of K6 adds in the Oct issue of Computer Shopper which is lying here beside me. Perhaps you should get yourself a copy and read the article on Page 114 "Making Sub $1000 PCs Isn't Easy" so that you can understand why. You will find that the article quotes Dean McCarron of Mercury Research as follows: "The profits are slim because the prices are so low. The margins for the low cost systems are actually recovering from about year ago, but it's a little bit of a challenge for small vendors" Also, Aaron Hung of Zenon Computer is quoted as saying " We were very happy selling $1000 systems a year ago, but we then found out the support and service cost (were) incredible. We encourage our sales and advertising department to avoid that($899) system. We try to up-sell." Low margins, high support & service cost. What a combo. Eh, Petz? Anyway, Have a good Tuesday. Herb