Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Joe NYC who wrote (109015)	5/2/2000 1:56:00 AM
From: Charles R	Read Replies (2) of 1578331

Joe, <That's a great prospect, isn't it? If this is the case, Sanders reluctance to commit to $100 ASP is a case of severe sandbagging.> Yes, yes. <Notice Osha's statement about discontinuation of Athlon wafers. I may be way off base, but my gut feeling is that this could mean an increase of ASP of at least $50, given K6 production is winding down / changing to slightly more expensive K6-2+. $50 increase in ASP is roughly $300 million, or almost $2 per share per quarter.> The advantage of Thunderbird is the reduced cost and a slightly improved ASP because of the better MHz mix (I say slight because AMD will be unable to exploit the MHz mix until it gets a few business SKUs). The ASP growth will primarily from improving the K6/Athlon mix. Nevertheless, I am not sure how you arrive at $50 increase in ASP but I see ASP of $100 +/- $5 for Q2 which would mean an increase in the $10-20 range. And, all of that ASP growth and a few additional dollars from the cost savings fall directly to the bottom line. Chuck

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