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kpf

01/26/07 7:51 AM

#37764 RE: Vattila #37761

Vattila

nor is that a sustainable business strategy (despite analysts dismay at the current fighting). In simple terms, fight for share or die.

Yes. If things are simple, there is no need for sophistication.

K.
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Sarmad

01/26/07 8:01 AM

#37769 RE: Vattila #37761

>> Intel's clear product superiority will be gone and market share erosion will continue, and probably accellerate, due to AMD's lower ASPs and cost structure.

I think this means you estimate that AMD has a lower cost structure than Intel. Is that counting ATI and debt, or does it assume no ill effect from ATI ? Maybe even profits ?


The next question has to be "If AMD has lower cost structure, why are they not profitable?"

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tecate

01/26/07 8:02 AM

#37770 RE: Vattila #37761

Well, we have heard this all before ... I will predict that AMD becomes more and more niche - they fall further and further behind on process technology, they have a hard time meshing with ATI.. etc.

Sometimes this is all so - common ;)-
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chipguy

01/26/07 10:02 AM

#37784 RE: Vattila #37761

AMD's current strategy is probably best summed up by Sander's mantra: "Volume is the vaccine". AMD continues its march towards a duopoly undeterred, although clearly not unaffected, by the harsh conditions on the battle field.

Wow, one can almost hear the battlefield of republic
playing in the background reading your drivel.

Here's the facts Chester: AMD uses expensive process
tech to try to gain a performance advantage over Intel.
Through better MPU design and implementation and
earlier access to smaller feature size but lower cost
processes (bulk instead of SOI, fewer layers of metal,
one class of device etc) Intel has better products that
are less costly to manufacture than AMD's but fetch
better prices and even better margins.

AMD is running at a brick wall with its flood the market
strategy with an inferior product. The harder AMD runs
at that wall the more damage it does to itself, not the
wall. By building fab capacity beyond its ability to fill
with well paying devices AMD is raising its costs with
volume not lowering it. And its borrowing to do so.
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The Duke of URL

01/26/07 10:05 AM

#37786 RE: Vattila #37761

The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2004, 2000 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.

du·op·o·ly n.
An economic or political condition which is used when the friggIn' laws suit fails, superior products have now become inferior, and any dork can see that Chapter 11 is just around the corner. Term used primarily when the, "We will bury you" campaign turns out to be a monumental failure.

also know as "fall-back position"

[DUO– + (MONO)POLY.]