2/26 AMD outsells Intel in Janurary. Kewl.
http://www.news.com/News/Item/0,4,32972,00.html
\_ Of course, if Intel sold its products below cost (like AMD
is), that might not be the case.
\_ its all about market share man. Do you think MSIE would be
where it is now if microsoft wasn't giving it away Free?
Hell in some cases they're paying people to use it!
\_ Which is strange--MS is being hammered, and AMD is
being praised, even though they lost $100M last year
and are losing money with every chip they sell. If
Intel did the same thing, they'd be attacked just as
MS is. And now, AMD comes up with the K6-III, which
will lose them even *more* money per chip (and they
don't really want to sell many of them). Whatever.
\_ They only lose money because they have terrible
manufacturing processes. Intel doesn't make any
money on the low end chips either. MS gets hammered
because they have a monopoly. AMD is forcing intel
which basically had a monopoly ot lower its prices.
\_ Actually, you have to design for manufacture as
well as manufacture well. Yes, Intel does make
money on the low end chips (trust me). It's
just not as much as on the high end chips
(obviously). AMD has stated that they have to
achieve an average selling price (ASP) of about
$100 to be profitable. Currently they're
selling at *much* less than that. It's the only
reason they're selling anything at all.
\_ How long can they stay afloat by losing money
this way? Intel after all has much more cash.
\_ AMD has other not-as-high-profile
products that we never hear about
because the news media doesn't think
that those products are sexy enough.
Perhaps those are the products that
are keeping AMD afloat. Besides,
Amazon isn't making much money and
their stock is (or was? I don't
remember) worth rather a lot. Success
is defined by something like the
Calculus of FITR, and I'm glad nobody
relies on me to make a critical
business decision that will increase
business success. Business is all a
load of goat droppings anyway, and we
should all go live on farming cooperatives. |