Gary Re..<<<<<<Yes, as I said, no one wants to be completely sold out. But what I would like want to know is if that 800k figure sold was all that the market demand or the 1M( or 1.1M?) that AMD made is the max the could make so in order to make sure they had some inventory left, they some how 'refuse' to sell more ?
Gary >>>>>>>>
I believe you are concerned way too much with this inventory. You are simply letting the Intellabies spread too much fudd here and you believe them. Why? Most companies, (I know I do),figure their products as sold when the OEM'S or stores or reseller get them; as the resellers and OEMS are responsible for paying for the chips; and returns are deducted from the bill. If you account for sales as AMD does where a chip is counted as inventory until OEM or reseller or store sells them to customer, then you would normally have a much higher inventory; because you now not only have your normal inventory (warehouse, shipping to oem,manufactured in progress etc., but you are also including the OEM'S inventory as part of your inventory. In addition, being a new product,it takes awhile to build up inventory, but for q1-00 this inventory ratio number should be smaller as most of the buildup should have been done in 4q-99. So even with sales being flat q-q, AMD likely would show higher profits q`1-00 because instead of building up inventory, you are now making sales.
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