Replies to post #51522 on Intel Corp (INTC)

[mas]

It's doing so because it's pricing its mainstream products very competitively in price/performance. Add to that the superior integrated graphics of AMD motherboards and there's your answer. If Intel runs out of inventory soon then there will be another reason.

[kpf]

Until we understand completely and absolutely why AMD is INCREASING market share

Well, to begin with, while understanding completely is already close to hopeless, understanding absolutely is hopeless. ;-)

Having said this, AMDs basic recipe for market-share-gains is nothing special:
1) They grow capacity faster than the market grows
2) They price to sell what they can make
There is only one refinement of the recipe as far as i can see:
3) They run their newest node targeted at mobile
This is very ambitious´from a manufacturing stance and took them quite a while longer than intended to work - but since it does it is particularly ugly for Intel: Any attempt to defend mobile mss by lowering prices would have devastating effects on its ASP - so this looks like a sustainable trend: Currently i see nothing that would prevent AMD from reaching its 30% mss target in mobile first. Probably not next year, but in H1/09, as far als notebooks are concerned. But then, i am aware the portrayal of mobile-market will likely include form-factors occupied by Silverthorne, so the bad 3 will not necessarily show. ;-)

K.

[Tenchu]

Duke, > Until we understand completely and absolutely why AMD is INCREASING market share,

It should be obvious. Intel is capacity-constrained and isn't meeting demand. Customers will then turn to the "second source."

The buzz on the AMD threads is that this is due to "yield problems" on Intel's end. This argument is an old one and is trotted out every single time Intel can't meet demand. (So much for Mas bringing any new and useful info to this thread). But considering that Intel hit record revenues with rising gross margins, I don't think Intel is experience "yield problems."

Maybe you can conjecture that Intel didn't spend enough on capex over the past 12 months. But there's a big difference between Monday morning quarterbacking and having to forecast billions of dollars in expenditures over the course of a year.

I'll conclude by repeating the same point I've been making for days now. Being in a sold out condition, especially with healthy ASPs and high-quality product, is quite a nice problem to have.

Tenchu

[Saturn V]

Duke,
Do not get me wrong. I believe as much as you do in listening to all points of view, and dissent for a proper investment decision.

But mas is no longer a dissenter. He repeats the same argument, ad infinitum, and enjoys needling people and occcasionally abusing people who disagree with him

He needs to change his style of dissent. That is why I insist on a limited time ban. Otherwise the thread chokes on the same point and does not contribute anything new.

[Andy Grave]

You know, in life you have to handle a little adversity. Valid business opinions, and posts, assume this. Until we understand completely and absolutely why AMD is INCREASING market share, a little vituperative epithet is worth sifting through.

a refreshing thought on what has otherwise become a perverted Intel board.

Andy Grave