think your example holds for AMD vs. Intel?
Dan, this might be the problem. I don't know, but I belive That Intel's unit cost of production is Lower than AMD's; this would allow Intel to sell at lower prices, while still maintaining a profit profile;
That AMD has NOT, my guess only, not recognized but deferred some of the cost of the German Plant, which would further increase its real costs,
and in the present economic climate, it may become more and more dificult to borrow, either from lending institutions or from the Market, in order to finance the deferral of costs.
And, in this market, it may not make real sense to spend a lot of money on the Athon to push it to what is a moderate increase over AMD's own existing product.
As Tony might point out, this may be a substantial flaw in Dan Scoval's thinking at Needham and Co. |
