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

To: d e conway who wrote (48768)	2/5/1999 6:08:00 PM
From: kash johal	Respond to of 1571983

Dan: Re: AMD issues. I think the variable cost (marginal cost) of the celerons is in the $40 range. So on average they are charging $80 let's say for Celerons. That is still 50% gross margin for Q1 99. Next quarter they will ramp up the 433 and 466 ASAP. They will probably be happy selling these for the $80 range as well. As an AMD long I have been stunned by the market reaction so far frankly. We all know the solution is that AMD must offer a great price for the high end chips such as 450K6-2 and K-3's. Because Intel cannot afford to dump and reduce prices in it's mid-range devices ie the PII and PIII's. As far as the Government saving AMD forget about it. Frankly the best thing AMD has going fo it is Intel's market cap. If they didn't want to keep the stock price up they would dump the PIII pricing as well when K-3/k7 comes out to maintain market share. AMD can have healthy margins in laptops and in the mid-range. If they continue to be behind in the MHZ race they will continue to be toast. regards, kash.

To: d e conway who wrote (48768)	2/5/1999 6:09:00 PM
From: Ritz	Read Replies (1) \| Respond to of 1571983

Dan: Re: "No, but AMD will witness in upcoming gommint suit" Yes, but that is not enough. The complaint in the upcoming suit, as I have pointed out previously, has nothing to do with predatory pricing against AMD/NSM. Message 7666651 The govt. could change tact and amend the complaint to encompass such a charge, however they have not (yet) done so. Even if they did, Intel would not be expected to "wing" a defense. It would certainly mean a delay in the trial of 6-12 months to allow for Intel to prepare a defense, or even more if complications ensue..... -Ritz