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

To: nihil who wrote (40864)	11/5/1998 6:18:00 AM
From: Crossy	Read Replies (1) \| Respond to of 1573116

Nihil, I believe that in semis economies of scale rules the world. That in turn means that production capacity is the major force. Intel can't continue cutting the ASP on its own chips when AMD finally managed to claim increased market share right now. It would hurt its own profitability quite considerably. Its own game in the past was to lower the entry-level segment prices and to milk notebook & highend segments. However now that AMD is developing a full-scale portfolio this strategy won't do it anymore. If INTC did that again, the're wouldn't be any segment left which they could skim. Not the notebook semgnet (K6 notebook) not the Server segment (K7). For this reason today's situation is IMHO much different from the days when alternative X86 design only competed versus the low-end of INTC. Now competition is about to unleash in all segments. I predict that INTC has to go for a different strategy set this time. I don't think that the old accelerated ASP cuts would continue with this unfolding. Maybe first indication of a different strategy are INTC investing in LINUX. This is much more of an indication than many might believe.. regards CROSSY

To: nihil who wrote (40864)	11/5/1998 11:17:00 AM
From: d e conway	Read Replies (2) \| Respond to of 1573116

nihil... << Few rational people care to compete with Intel >> You forget one thing...Intel is an overgrown elephant & can't move fast enough. Further, it has completely lost credibility with us, its long-gouged END USERS. Unlike you, a lot of us don't believe in "Intel Inside"...we just don't like having little folks dressed up in space suits running around inside our computers. Competition will toast Intel in the long run. They'll be brushed aside, not necessarily by AMD, but by real competition and by new innovation they won't be first with. What was the last real Intel innovation?...a repackaged Pentium?? You might find more sympathy on your INTC thread. regards, Dan