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

To: Mani1 who wrote (55062)	4/10/1999 5:35:00 AM
From: Tenchusatsu	Respond to of 1583681

<Excatly how do you come up with this? What do you know about Compaq's strategy/pricing that we don't?> Pure speculation. It's pretty obvious that the profit margins of the retail sector are razor thin. It's also obvious that Compaq is going to try to make its money in a market segment which isn't so sensitive to price. AMD supporters should know very well how Intel makes its big bucks on Pentium II, III, and Xeon, rather than Celeron. Same thing goes with Compaq. If this is a sign that the business market segment is being dragged down into the sub-$1000 range, just like the retail market, then this is extremely bad for AMD. Why AMD and not Intel? Well, AMD wants to move into the business market segment where they can sell their processors at higher margins. What happens when AMD finally makes its foray into the commercial sector, only to find that big bucks just aren't there anymore? Yes, Intel's profits will suffer as well, but Intel's financials are much stronger than AMD's; thus Intel will survive longer. Same old story once again, AMD tries to bloody Intel's fist with its face. And the consumer once again makes out like a bandit, until one side emerges the victor from this bloody mess. Tenchusatsu