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


To: Marco Polo who wrote (60616)6/4/1999 8:40:00 PM
From: Tenchusatsu  Read Replies (1) | Respond to of 1572777
 
<Or maybe AMD has always had aggressive pricing as one of their hallmarks. Even the K7 is slated to continue the tradition of pricing at a 25% discount to the competition from Intel. In the long run, that's what is going to buy them market share.>

1) Look at the results of AMD's aggressive pricing strategy. More losses, because AMD underestimated Intel's willingness to risk the high margins and engage in a price war.

2) AMD quietly scrapped the promise of a 25% discount last year. However, the press and AMD fans still don't know.

3) Buying marketshare is fine as long as you can also use that marketshare in order to make money in the near or long term. So far, the near term profits aren't there. Long term? That depends on a flawless execution of a business plan from hell.

Tenchusatsu



To: Marco Polo who wrote (60616)6/5/1999 10:35:00 AM
From: Paul Engel  Read Replies (1) | Respond to of 1572777
 
BennyD - Re: "In the long run, that's what is going to buy them market share."

Last quarter, AMD BOUGHT market share with a $128.4 MILLION LOSS.

I see you learned a lot in your ECON classes !

Paul