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

To: RDM who wrote (48816)	2/6/1999 1:39:00 PM
From: Yougang Xiao	Read Replies (1) \| Respond to of 1571673

<<Why did Intel move the price change up from Feb 28?>> In early December, Intel cut deeply their low end Celeron prices was when AMD dumped those AFR 300 to 333 Mhz chips. Intel's agressive price cut in certain grades of Celeron is a DIRECT response to whatever grades of K6-2 AMD can mass produce. Trust Intel's corporate intelligence!! The "pull-in" cuts of Celeron from 2/28 to 2/8, especially those deep cut at 400 is the cystal clear confirmation of Jerry's promise that 400 and above are coming starting around 2/15 or so. Intel's aim is strike at AMD's sweet spots -- 380 and 400 parts that are ready to be fedexed out of Penang plants shortly. The corporate theme 3 weeks ago as explained in the latest CC was to MAINTAIN market share through pricing K6-2 ON PAR with those of Celeron in order to MAKE EPS numbers. I believe AMD has anticipated this latest pull in price cut and originally planned to MATCH, that is, price on par with those of Celeron. Now, they CAN NOT just match Celeron, WHY? Gateway, and Gateway deal came with a huge price! Must be a dirty cheap price for that Profile based K6-2! IBM and CPQ and other custmers demand the Gateway like price, or else, we use Celeron! Under the circumstance, AMD has two choices: 1. Keep the old MATCH price -- result, not only can not make the EPS number, but hold the excess inventory as well. 2. Price UNDER Celeron to take a hit on Number but let Intel holds the bag of excess inventory of Celeron. AMD chose the #2. Hence, came the "RE-Assessing" annoucement! RE-Assessing is nothing more than a code word for Jerry to signal an agressive price against Celeron price cut, that is -- PRICE under. Scott Allen told Rene of CNBC's business center piece that: 1. this is 1 Qtr event 2. EXPECTED TO GAIN MARKET SHARE IN CURRENT QTR. How can AMD gain market share without a MORE competitive price?