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

To: Scumbria who wrote (45034)	1/6/1999 5:15:00 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 1571205

The concern is that the K6-2 has no MHz advantage over the Celeron as in the past. In that case, Intel can squeeze AMDs ASPs. The K6-3 is a bit late. Katmai has been announced for Feb 28 and will start shipping to OEMs earlier than that. Market was depending on the K6-3 to raise AMDs ASPs. A K6-2-433-450 and a K6-3 will do wonders for AMDs stock price... $135-150 for the 400 K6-2, $175 for a 433 (about same as Celeron 400) and $220 for a 450 would put AMD back in the groove... A K6-3-400 for $300 and a 450 for $375 would help even more... Jim

To: Scumbria who wrote (45034)	1/6/1999 5:19:00 PM
From: kash johal	Read Replies (1) \| Respond to of 1571205

Scumbria, Re: what are the concerns??? I think the concerns are very valid: 1. Due to explosive growth in Servers driven by the Intenet, Intel has an 80-90% margin product (Xeon Family). With this profit base Intel can attempt to cut off AMD at the knees with Celery pricing. 2. Introduction of Katmai. We all know that it is BS in terms of an meaningfull application. But folks who buy computers do not want to buy something that will be out of date or may not run something in a year or two. Look at the success of MMX, it is junk, but you can't buy a CPU that doesn't support it today. The only way AMD get out of this hole is by having chips that are as fast or faster. We know that k-3 and k-7 specs look great, but can AMD yield the fast speed grades over the next couple of quarters. As an AMD investor, I obviously tend to think that they are close to catching up to Intel: k6-2 450 in a few weeks, 333Mhz mobiles and the k-3's on their way. But I can certainly understand why the stock is languishing. I think AMD needs to talk up the Mobile 333's and the upcoming 450's ASAP, and obviously have good Q4 numbers. We shall see what next week brings. Regards, Kash

To: Scumbria who wrote (45034)	1/6/1999 7:55:00 PM
From: Paul Engel	Respond to of 1571205

Scumbria - Re: " Selling K6-2 at 25% below Celeron 400 Mhz prices should be quite profitable for AMD. " You are making the erroneous assumption that nearly all of AMD's K6-2 yields are at 400 MHz or greater. WRONG ! The 400 MHz K6-2 probably represents a small fraction of their production yields - so most of AMD's slower speed K6-2's must be sold well below $100.00 Look at AMD's stock - I think Erika Klauer pegged the problem - LOW ASP's of about $85. We will know next week. Paul