Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Elmer who wrote (49052)	2/9/1999 1:37:00 PM
From: Kevin K. Spurway	Read Replies (1) \| Respond to of 1571704

Re: "Perhaps investors should start thinking about AMD's breakup value and adjusting their strategys accordingly." By selling puts? Message 7732916 Give us a break. Kevin

To: Elmer who wrote (49052)	2/9/1999 2:21:00 PM
From: Merlo	Read Replies (4) \| Respond to of 1571704

Intel is being punished for dragging the entire tech sector down with their predatory pricing. Look at the damage they caused AMD.

To: Elmer who wrote (49052)	2/9/1999 6:09:00 PM
From: RDM	Respond to of 1571704

Elmer, I believe that Intel actions have clearly stated by Intel to be use the Celeron to gain market share against AMD. THey are simply floating a product at a higher price than AMD but undercutting AMD pricing at large OEMS. This is what a price war is. Intel can make large profits at the same time as doing this price war/reduction. They have other products to cover the overhead. Celerons are 10% of their revenue. Even if they gave them away free it would only reduce their profit by a small amount (perhaps 25%). The real threat to Intel is if the Celeron suddenly becomes a much large percentage of their business. Then the low margin of the Celeron would be more material. It is very difficult to ensure that Intel Pentium customers will stay with Pentium as opposed to switched to the Celeron. Intels Celerons actions are making value a central buying propositon on a bigger scale than AMD ever did because they are bigger and greater reach. I hope you are right that the $15 hit in Intel is just temporary and due "normal trading factors". However, I am concerned that the market may been better than anyone in sensing the pending consequences of Intel's managed plan to "retake the low end" and is in the process of repricing appropriately downward.