Originally posted by: jjsole
It pains me to see AMD choke so hard on the price competition.
(altho unfortunately not enough to avoid waiting for the new core2's in a couple weeks. )
If AMD had higher class CPU's to offer it would not need to choke on the low profits possible in the budget sector. Since it can only offer budget CPU's at budget prices it's at its own fault for running dry in the financial department.
AMD's price fall is in response to Intel's July 22nd price fall. If Intel didn't want to do a price cut then sure you can be very sure AMD would behave identically.
There's no reason to worry however. Only the CEO and CFO of AMD need to be worrying right now for spending money they didn't have and getting a fragile company into bigger debt. Unless AMD gets private cash from some investor(s) then they will have to announce in late Q3 or Q4 this year that they are in financial constraint. They are obliged to as a listed company on the NYSE and other stock exchanges.
AMD believed too much in its superiority over Intel during the Athlon X2/Pentium 4/D era and decided it was ok to take money from its R&D and spend on bonuses and fabs, and loans and ATI etc. etc. Sure AMD thought it grabbed God by his legs and decided we will finally become a big company but unfortunately AMD forgot Intel has a very good track record for delivering good products at the right time. Even if an Intel product isn't as good then it's marketing department makes sure that Mr Smith or Mrs Smith believes otherwise. AMD just can't do that. Besides all this K7 was never AMD's design, they bought NextGen back in 1997 and the K7 was actually their design. The K8 and so forth is based on the K7.
Until this day I don't know what the hell was AMD thinking trying to make a native quad core chip comprising a lot of silicon per unit knowing damn well that their manufacturing performance is less than stellar and such a chip is very prone to not delivering high yields early in the game. If you have a 200mm2 die and a 66mm2 die then you can be very sure even if one of the core in a native 200ms2 die is duff, then you need to throw away the entire 200mm2 you just lost. If AMD just simply behaved according to its size and capabilities and instead employed a dual core at most manufacturing approach, then then would they have a much better chance at getting Phenom and Agena out of the door.
AMD is in panic mode right now regardless whatever statement they provide stating otherwise. AMD is in bad shape right now, make no mistake thinking otherwise.