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

To: Gary Ng who wrote (53158)	3/22/1999 10:06:00 AM
From: gnuman	Read Replies (1) \| Respond to of 1583384

Gary Ng, re: Does it mean that eroding prices is unique to AMD? I think it's an industry phenomena. Semi's and PC makers all seem to be experiencing downside on revenue and profit growth from this segment. I think most expect to make it up in the server segment. Xeon will certainly help Intel. The question for AMD appears to be their success with K7. Time will tell. That's the main reason I'm interested in LaFountains data and comments on X86 servers. Gene

To: Gary Ng who wrote (53158)	3/22/1999 10:15:00 AM
From: Bill Jackson	Read Replies (1) \| Respond to of 1583384

Gary, AMD is trapped at the low end, it has to sell beneath Intel by some margin, thus all production costs being the same will make less than Intel on thses low end sales. Intel may have better yields? Intel also has the high end processors on which it makes 95% margins. AMD has no high end processors. Now AMD is trying to move up market and get some decent profits, so Intel intensifies the price cuts in the hopes of denying them entry. the last thing Intel wants is a chip for chip competitor at all levels. Bill

To: Gary Ng who wrote (53158)	3/22/1999 11:49:00 AM
From: Joey Smith	Respond to of 1583384

Gary, keep in mind that the those Feb. mkt. share numbers only include PCs sold in US retail stores, and does not include on-line PC sales coming from Dell, Gateway, Micron, etc. (in which Intel processors dominate over AMD). Thus, the number can be very misleading since on-line sales are becoming an increasingly popular way of purchasing PCs, as opposed to traditional computer stores. Of course, the author of that article does not point out this difference in channels... joey