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

To: Elmer who wrote (49049)	2/9/1999 1:11:00 PM
From: Scumbria	Read Replies (1) \| Respond to of 1571803

Elmer, Why is Intel able to maintain their profit margins when AMD can't? PII and Xeon sales. Intel isn't making any money from Celeron. Scumbria

To: Elmer who wrote (49049)	2/9/1999 1:36:00 PM
From: Jean M. Gauthier	Respond to of 1571803

manufacturing, manufacturing, manufacturing.... execution, execution, execution product mix, product mix, product mix Just IMO Take care Jean

To: Elmer who wrote (49049)	2/9/1999 5:51:00 PM
From: RDM	Respond to of 1571803

Intel is the leader. No one sane doubts that. If you are the leader you set prices and the market responds. With 80-90% of the market it is easy to make large profits that you pour into Research and Fabs. Intel has done this with skill. However, with size comes bureaucracy, in fighting, and misdirection. After a while Fear, Uncertain and Doubt are the major tools. Intel is IBM of the 1970s. IBM made huge profits. They were the only BUNCH company that did. They had 80% share. New technologies, require new organizations that large companies have a hard time implementing until it is too late because they have large profits. AMD, IMHO, will have large profits only if : 1. Their chips outperform Intel chips up and down the line 2. They are as, or more, cost efficient to produce than Intel's. Don't expect large profits real soon. This is a long term job(3-5 years). When this happens it will have been too late for an investor "to wait and see" because the market will know when it will happen before any individual.