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

To: Paul Engel who wrote (39369)	10/14/1998 11:25:00 PM
From: Steve Porter	Respond to of 1588662

Paul, While there have been no official announcements apparently everyone expects gateway to announce and HP. Add to this what will happen if Intel can't supply enough low-end chips and you have a scenario where AMD has to crank the fabs up an extra notch. It's all pure speculation, but based on what we are seeing taking place right now, I think I am correct. Steve

To: Paul Engel who wrote (39369)	10/14/1998 11:37:00 PM
From: Bill Jackson	Read Replies (1) \| Respond to of 1588662

Paul, I have not seen any majors announce, however there has been a huge increase in the number of small shops using the fastest chips. This seems to be driven purely by cost factors as the fast K6-350 just matches the celeron(within a % or two) but the board, case and part are markedly cheapr. The games fans(those kids that cannot afford P-II/450) are also big buyers. Since there are around 50,000 of these screwdriver shops across North America this distributed demand is quite significant, one a week each is over 200,000/month. In addition they pay list price and we know those design wins are often at steep discounts. This means better margin. It all started when there was the shortage at summers end and people substituted AMD parts for intel, and there was no fire or explosion and the clients went away happy. AMD now has a field sales staff going around knocking on doors at all the small shops and giving promo stuff to kick start the market. So i expect this distributed demand to stiffen retail prices and tighten supply and good part of it will fall to the bottom line, so AMD might well have an auspicious quarter. Bill