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

To: Elmer who wrote (58178)	5/14/1999 8:35:00 PM
From: Tenchusatsu	Read Replies (4) \| Respond to of 1571808

The question isn't "Can AMD sell everything they make?" because we all know the answer to that question. Rather, we should be asking "Can AMD sell everything they make and make a profit?" Now before Scumbria pops in here and whines "Intel is trying to crush AMD with predatory pricing," let's get a few facts straight. I think it's quite clear now that Intel is the one in control of the pricing structure. Most of us can agree on that. Intel is dropping prices in an effort to regain marketshare from AMD, or at least to protect against future loss of marketshare. The problem is that AMD is willing to starve itself to death as long as it can keep its marketshare. So why should Intel drop prices in the first place, if it's clear that AMD will do whatever it takes to keep marketshare, even at the expense of profits? Shouldn't Intel just keep prices high, give AMD some breathing room to make a profit, and let everyone make money and be happy? No, because it isn't that simple. How does the saying go, "Give 'em an inch, and they'll take a mile?" Let's say, for example, that Intel holds prices steady for a while, allowing AMD to keep its own prices at a healthy level. It would then become much easier for AMD to low-ball Intel in the future by, say, charging extremely low prices for the K7. Then the battle in the PC market could turn ugly once again. Comments are welcome, except those which consist of nothing but immature one-liners ... Tenchusatsu

To: Elmer who wrote (58178)	5/15/1999 10:28:00 AM
From: Paul Engel	Respond to of 1571808

Elmer - Re: "Clearly the supply and demand are wildly out of balance and AMD is doing a near firesale to dump their backlog. This is a low volume product and they have to dump it for whatever they can get. So much for the claim that they are selling all they can make! You don't have to dump in a sellers market. Look for the price to continue to drop enroute to another record loss for Q2. On the bright side, AMD has soooooo much potential!" EXACTLY !!!! I guess we'll all STAY TUNED !!!! for MORE AMD LOSSES ! Paul