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

To: Process Boy who wrote (58865)	5/19/1999 11:05:00 PM
From: kash johal	Read Replies (3) \| Respond to of 1583371

PB, RE: "1. As the low cost supplier and with a huge cash horde and with the best brand name they can hold out longer than anyone else so the devastation will be temporary. 2. Intel didn't get to where they are today by running away from AMD or anyone else. They will stand and fight." Look this low cost supplier stuff is krapola and you know it. The variable cost for both comapanies is in the tens of dollars. The big bucks are spent already on fabs, equipment and personnell. Both companies are adding significant capacity rapidly. In K6-2 die size terms AMD will have the capacity to produce 20M units/QTR once the 0.18 transition is completed and dresden comes on line. SO both companies need to hope that the customer really needs the extra horsepower their chips need etc. In terms of ability to survive- sure Intel will survive. But the stock price sure as hell won't if profits vanish. As far as AMD going away due to lossess - forget it. They are focussing their future entirely on the x86 business and they have survived for 30 years and they have never made any real money. Regards, kash

To: Process Boy who wrote (58865)	5/19/1999 11:31:00 PM
From: grok	Respond to of 1583371

Re: <"If the crisis comes, Intel will collapse the ASP and retain market share" This if worse comes to worse, this scenario is reasonably accurate, IMHO.> Yes, this is a worse case scenario, for Intel and for AMD.

To: Process Boy who wrote (58865)	5/20/1999 12:08:00 AM
From: kapkan4u	Read Replies (3) \| Respond to of 1583371

KZNerd - <If the crisis comes, Intel will collapse the ASP and retain market share. Of course this will devastate the stock price but: 1. As the low cost supplier and with a huge cash horde and with the best brand name they can hold out longer than anyone else so the devastation will be temporary. 2. Intel didn't get to where they are today by running away from AMD or anyone else. They will stand and fight.> < PB - re: This if worse comes to worse, this scenario is reasonably accurate, IMHO.> This may be a reasonable scenario for Intel employees, whose options will be marked down after the stock collapse, but the shareholders may try to run Craig out of town under the said scenario. And one more thing. AMD is a bare bones operation with 13k employees. They have been around for a long time, surviving on slim or no profits. To survive a total war in the falling ASPs environment, Intel will have layoff 30% to 40% of the 64k employees. Especially those, who are not directly involved in building, designing and selling CPUs.