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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 215.00+0.7%Dec 22 3:59 PM EST

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To: andreas_wonisch who wrote (21817)12/7/2000 2:14:29 PM
From: Charles RRead Replies (2) of 275872
 
Andreas,

<1.2 GHz Athlon for $289 on Pricewatch now!! That's unbelievable. Either demand is really bad or AMD is intentionally flooding the market with high-speed parts. With this pricecut a 1.2 GHz Athlon is cheaper than a Pentium III with 933 Mhz. I guess we will see 1 GHz in the $1,000 OEM systems very soon. I really hope that this move won't destroy ASPs. At least AMD is starting the price war this time...>

Looks to me AMD is solving the infrastructure problem with a brute force approach. The key to maintaining ASPs with this kind of price structure is to ensure that the FSB133 infrastructure ramps quickly and 1.33 and higher speeds take hold fast.
May not be a bad risk given where AMD stands today with FSB133 infrastructure and the anticipated Palomino release.

Chuck
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