Replies to post #794 on Intel Corp (INTC)

[H0db]

Elmer, where did that come from?

An attribution or link would be appreciated.

[wbmw]

Elmer, here is the link you should have included. Knowing that this piece was from Business Week makes the article that much more poignant.

http://www.businessweek.com/technology/content/sep2002/tc20020924_6824.htm

Edit: I just finished reading it. Quite a daunting perspective! Some very choice quotes in there, too. I may actually respond to them in a subsequent post.

wbmw

[SemiconEng]

Intel Is Kicking Silicon at AMD
The upstart's soon-to-be launched Clawhammer chip, while a step forward, may not be enough to keep pace with the giant

---Did you see that new intel inside commercial during Monday Night Football? The commercial zero'd into a small circle in the middle of the screen, then overlayed a statement like "intel inside... my homework, then the circle spreads out, and several scenes are played showing young people using intel technology in innovative ways for completing homework tasks. I only saw part of it, but in addition to Homework, I saw segments on Digital Pictures, and Adults at work. I like the way intel showed examples of people using the technology, instead of just standing in a crowded corner with "Deer In Headlight" looks, saying "Do Me".

:-)

Semi

[wbmw]

Elmer, just a couple choice quotes I wanted to highlight. As I read further, the article just seemed to get darker and darker.

- Yet unlike Intel, AMD can't turn a profit while making price cuts. Because its processors are better known, Intel commands a 30% to 40% premium over AMD's chips, according to Michael McConnell, an analyst with Pacific Crest Securities.

- from the third quarter of 2001 to the same quarter of 2002, Intel's average selling price of a chip should rise from $150 to $160, while AMD's will drop from $58 to $55 -- or less, estimates Jonathan Joseph, an analyst with Salomon Smith Barney.

- Intel's PC processor market share has grown by 2.6 percentage points, to 81.9%, in the second quarter, according to IDC. And the giant should enjoy further gains in 2002. "I'd be surprised if AMD can sustain [its] market share during the rest of the year," says Shane Rau, an analyst with IDC. In fact, most experts believe Intel could grab 90% of the market -- or more -- eventually.

- "If AMD has trouble making money with 20% of the market, imagine what it would be like when it's 10%," says David Wu, an analyst with Wedbush Morgan Securities.

- If Intel keeps gaining share, does antitrust become a concern? Not necessarily. "In the current Administration, [antitrust] actions are less likely," says Sophia Koropeckyj, director of industry economics at researcher Economy.com.

- Intel "plays with AMD like a toy," says Brian Matas, vice-president for research at semiconductor consultancy IC Insights.

- For AMD, "it's all going to depend on Hammer," says Joseph Osha, an analyst with Merrill Lynch.

wbmw