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

To: Elmer who wrote (60086)	6/1/1999 1:55:00 PM
From: A. A. LaFountain III	Read Replies (1) \| Respond to of 1576229

Elmer: re "If they can do any harm to Intel's bottom line ..." That statement makes it sound personal. I believe it's much more Mafia-like ("Nothin' personal, it's just business"). To state that expense is not a consideration at AMD is just plain wrong. I've had too many conversations with AMD management that reflect a very keen sense of the financial considerations of what it is trying to do. This is not about putting someone (either one) out of business. This is about creating/protecting/seeking above-average returns. The management of AMD stands to improve their financial lot dramatically with a substantially higher stock price. That only happens if AMD's profits go up and is only indirectly tied to a reduction of Intel's profits. I happen to believe that a much higher percentage gain in AMD value can occur than the percentage loss of Intel value needs to be to accommodate it. Perhaps I'm wrong (it's been known to happen!). Lack of credible competition (for whatever reason, and God knows they've all been discussed on this thread) led to extraordinary profitability for Intel. Intense competition from an entrenched market leader has created extraordinary challenges for AMD. Generally, in a situation like this, margins will tend to eventually move towards a mean. For Intel, that would be lower; for AMD, higher. But that's just arithmetic and probably should not be imbued with the philosophical and judgmental aspects of your declaration. - Tad LaFountain