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No. of Recommendations: 4
The gorilla model is good, but not foolproof! Also I see the follow rules being violated:
1. high barrier to entry.....amd is in.
2. discontinuous innovation (no longer true for intel).... amd's innovation is more than competitive.


Let's say (for example) that Intel changes the instruction set on their next generation of processors. What do you think will happen? Will AMD be forced to follow suit? Will the compiler companies (Visual C++, etc.) modify their compilers to utilize the new instruction set? I think that the industry will follow their lead.

Now, if AMD were to make a similar change (independently from Intel) to the instruction set, do you think the rest of the industry would follow, or do you think AMD would be left swinging in the wind?

Industry clout still matters. Intel owns the microprocessr clout -- not AMD. Until AMD can find its own discontinuous innovation in a new market, it will not be able to overcome Intel's clout. Period.

Unless, of course Intel does something rash -- like backing Rambus memory. <ggg>

Steve

ps AMD shareholders really get bothered when you mention RMBS!
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