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

To: kash johal who wrote (58867)	5/20/1999 12:02:00 AM
From: Process Boy	Read Replies (1) \| Respond to of 1583391

Kash - < SO both companies need to hope that the customer really needs the extra horsepower their chips need etc.> Kash, I think you misinterpreted my comment. I don't disagree with most of you response. However, in the worst case scenario for both companies, where essentially the market goes south, I basically agree with KZNerd, who's comments you posted in replying to me. BTW, I didn't day anything about the stock price of either company if the market goes south. I think that's obvious. The point I was agreeing to is that Intel with it's cash reserve would obviously in better shape to survive a market downturn. One factor I believe you are not taking into account is that Intel has a server / workstation business. AMD does not. This is a big factor in such speculation. If I were an AMDer, I would not be all fired up about reports of the demise of market segmentation, considering what they want to price the K7 at. PB

To: kash johal who wrote (58867)	5/20/1999 3:03:00 AM
From: Paul Engel	Respond to of 1583391

Kash - Re: "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." That was great, Kash. So great that I want to re-post AGAIN - for all the AmdROIDS TO READ A SECOND OR THIRD TIME ! 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. Paul

To: kash johal who wrote (58867)	5/20/1999 8:46:00 AM
From: A. A. LaFountain III	Read Replies (2) \| Respond to of 1583391

Kash: re "The big bucks are spent already on fabs, equipment and personnel" Well, yes and no. The big bucks are prespent (if that's not too inelegant a term) for the fabs and equipment, so the costs associated with them are a non-cash charge. The headcount is a sticky cost, not fixed in the strictest sense, but not variable either. Although I'm no process guy (or Boy, for that matter), I have a sneaking suspicion that the operators are fairly essential to the tools and that they're not kept around for show. But there's another fixed cost that often escapes such discussion - interest. Intel doesn't have any, and AMD gotta have it. By definition, you can't go bankrupt if you don't owe anyone, so don't think for a minute that Intel wouldn't be the last one standing. But I believe that the odds of the situation sinking to this level are fairly small. It's been my contention for the last several months that AMD's progress (which on a technical basis has been documented by many on this thread and which on a financial basis has been pointed out by many on this thread) is, on balance, sufficient to put Intel's excessive margins at risk and is likely to enhance AMD's pitiful profit record. There is room in this market for two viable vendors, and it's unlikely to be the scorpion dance that many seem to think is preordained. - Tad LaFountain