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

To: Guy99 who wrote (39412)	10/15/1998 10:11:00 PM
From: Paul Engel	Respond to of 1570293

Guy99 - Re: " Seems to me it can't be anything but bad, producing downward pressure on prices with no increase in sales. " This is not only superb incite but an excellent observation. That explains Intel's recent revenue drop and profits drop that they reported just a few days ago. Paul

To: Guy99 who wrote (39412)	10/16/1998 1:29:00 AM
From: Dale J.	Respond to of 1570293

Guy99, Seems to me it can't be anything but bad, producing downward pressure on prices with no increase in sales. Prices have certainly fell, but I think they will stablize. Neither Intel nor AMD are interested in further price drops. AMD should consider raising prices on the K6-3 and K7. You don't think Intel will grow sales? I think they will. First consider the fact that Intel is essentially untouchable in the fast growing and very profitable server market. I don't see that changing anytime soon. Second they are entering all segments of the market from lowest $499 PC's to the middle $800-$1000 market. They have only recently got aggressive in this area. I think AMD will be lucky if they can hold the market share they gained. Remember AMD can no longer sacrifice short-term profits in hopes of greater long-term profits. Creditors and Investors are looking for profits this qtr. Thirdly don't underestimate Intel's ability to cut costs. Intel is anticipating lower manufacturing costs. Dale