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

To: Greg S. who wrote (49051)	2/9/1999 1:16:00 PM
From: Tenchusatsu	Respond to of 1571893

Greg S., Excellent post. I agree with you on all points. Tenchusatsu

To: Greg S. who wrote (49051)	2/9/1999 1:19:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1571893

Re: "Personally, my recent failure was to not recognize that being competitive and being profitable, although related, are two different things. AMD has become -VERY- competitive recently, but unfortunately their profits are suffering. And more unfortunately, stock price is tied more to profits than to competitiveness. I was sure that K6-3 and K7 will have a positive effect on the market (and still am) but I failed to consider that AMD might be ripping its guts out to get these products to compete. And compete I think they will. So I'm holding AMD until they do .. or don't." I understand what you are saying. I would put it differently and say that AMD has become much more competitive performance wise but probably even less competitive business wise because the K6 generation has failed to bail them out from the deep hole they dug for themselves. Only token profits over the last couple of years surrounded by a sea of red ink. This is not the financial foundation of a company who wishes to compete in business. New generations of products require huge capitol investments and AMD is down to hocking their headquarters to scrape up cash to stay alive. They are like a "floater" in the toilet bowl that just keeps spinning around and around until finally it's caught in the whirlpool and down it goes. EP

To: Greg S. who wrote (49051)	2/9/1999 1:23:00 PM
From: Scumbria	Read Replies (2) \| Respond to of 1571893

Greg, Intel can lose the entire low-end market and still make plenty of money That is exactly the point. If Intel's management had their thinking caps on, they would let AMD and Cyrix in the door, and everybody would be perfectly happy to sell CPUs for $200+. Instead, the paranoid management of Intel keeps cutting prices, mindlessly hoping to kill off the competition. All they are doing is dragging the entire industry down. They think their phoney-baloney "market segmentation" scheme will make them safe until AMD kicks the bucket, but they are wrong. Their customers (Compaq, Gatweway, Dell, etc.) are not stupid. Would AMD rather sell CPUs for $300 or $100? Scumbria