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

To: d e conway who wrote (59027)	5/20/1999 5:21:00 PM
From: kash johal	Read Replies (3) \| Respond to of 1583507

Dan, Re:"Big worry for Intel...what do they do with all that capacity? Oversupply kills the golden goose. Of course, also there can be no price relief for AMD." Yeah its a big worry for Intel. Frankly I am in this to make money and we can only do that if both companies do OK. If demand rockets both companies do extremely well. With 0.18 micron the variable cost on the KIII and Coppermine should be <$30. Perhaps the "free" or subscription PC model approach can ramp volume demand more than the 10-15% the analysts are predicting. I remember Paul Engel had talked about price/demand elasticity a while ago. No one has a good model for it but it is certainly true that when the price drops more folks can buy it. This will be bad news for Dells and CPQs of this world but good news for folks like e-machines and AOL etc. Regards, Kash