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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 200.46-17.2%Feb 4 3:59 PM EST
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To: Joe NYC who wrote (228175)3/16/2007 10:54:45 AM
From: TimF of 275872
 
The quad core could be $900 because its expected to be a low volume part. As you point out for many people dual core will be better, but those who can take advantage of the quad core might be willing to pay. Intel might figure that while that cutting the price to say $800 or $650 might not bring in enough additional customers to make up for the lower price on the quad core. Or maybe the part has low yields. Or they are trying to price discriminate over time. With the early production going to those who will pay a bundle for "Wow 4 cores, cool", and then they lower the price.
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