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To: gnuman who wrote (65946)	10/7/1998 12:55:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Gene - Re: "Now if you could provide market data." Here's some market data: AMD .. 12:19PM .. 16 7/8 .. -3 .. -15.09% .. 5,313,500 Make of it what you will. Paul

To: gnuman who wrote (65946)	10/7/1998 1:08:00 PM
From: Jeff Fox	Read Replies (2) \| Respond to of 186894

Gene, re:"What is important..." Well thought and well written, but some points you should consider: - Increasing AMD share is not a given. Intel is resourced and committed to all PC segments and will continue to introduce product after product to assure it has the best value in the low end PC segment. Look for AMD penetration to first stabilize and then reverse trend. It is a mistake to think that AMD will somehow maintain some share number. - Even though PC's outsell servers by a magnitude, the revenue per sale exceeds PC's also by a magnitude. Servers are significant to Intel and will be the principle engine for revenue growth for at least the next two years. - The trouble with AMD is that it is not generating earnings to finance technical obsolescence and growth. The K6 is aging rapidly, and AMD plant is aging rapidly. They are current spending over $350 million per quarter to do this current venture, money taken from loans and stock holder's equity. Without profits there should be a limit to this soon - called bankruptcy. Jeff

To: gnuman who wrote (65946)	10/7/1998 1:29:00 PM
From: Tony Viola	Respond to of 186894

Gene, Re: "Much has been made of Xeon and it's high price and margins. But I'm getting the sense that PII and it's coming variants will continue to outsell Xeon in the workstation/server market by at least an order of magnitude." WRT Xeon, it's just getting started, and, Intel I'm sure would admit it's been somewhat of a stumbling start. The Pentium Pro also didn't launch perfectly, but was a big success overall. Xeon will be a bigger success because there are even more server companies that push NT, and quite a few UNIX companies as well, solidly behind it with either all new hardware servers in the case of NT, or software compatibility support in UNIX's case. I don't think IBM, Dell, Compaq, HP, etc. bother to develop their flagship, or close, servers on Xeon unless their marketing departments are very confident they will sell. The self fulfilling prophecy (almost) of the last ten years was that the mainframe would be replaced by PCs, workstations and servers. The self fulfilling prophecy (almost) of the next ten years will be that UNIX gets replaced by NT. That almost will sell a lot of NT hardware. Actually, whatever happens, Intel wins because their servers can go both ways, hit from both sides of the plate. Tony