Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 237.57

-2.6%

3:59 PM EST

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To: Goutam who wrote (12371)	10/9/2000 4:59:33 PM
From: RDM	Read Replies (2) of 275872

<I agree. I can list some more beneficial implications connected to AMD's recent price cuts -> There are many ways to think of the price cuts. The way I view it is that AMD is achieving bin splits favoring increasingly higher speeds. They are moving the bar 200 Mhz upward from June bin splits. Whenever this higher speed distribution occurs, the higher speed parts that once were scarce become abundant. The pricing is just adjusted to bring demand in balance with supply. It is the volume weighted average price for Duron and Thunderbird parts that is key to profitability. Hopefully the averages will go up though the prices go down due to volume, volume, volume... Of course the analysts less commonly announce their estimates of projected average selling prices since these prices require more work than reading a price list.

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