Re: What PCs ARE NOT having their prices cut?
I know - 1.2 GigaHumpers - which aren't even being sold.
Good point. Jerry Sanders, once again, seems to have done a better job of reading the state of the industry than anyone else. He priced the 1.2GHZ parts "too low" so AMD has been selling out of their most lucrative parts (that certainly could have been a little more lucrative, but not while sitting on shelves).
Meanwhile, Intel is sitting on a good part of its depreciating inventory of P4s instead of selling them.
Two years ago, Jerry risked everything to expand AMD FAB capacity when Intel was putting projects on hold - and he was right. Last year, as Intel was breaking ground on a half dozen new FABs 6 months before this semi slowdown, Jerry was suddenly quiet about AMD's FAB 35, and obviously hasn't spent any money on it - looks like he perfectly judged the market once again.
AMD went into last year's semi boom just as a (for it) massive FAB expansion was coming on line and with an expensive to produce, but high performing line. They are going into this year's semi bust with no major new capex, and with a low cost, but still decent performing line. Give the guy credit for once, he's really been calling the semi cycle lately.
Dan
PS - I'm writing this on the SiS 730s based system I built last night - a Motherboard with video, network, sound, hardware DVD, modem, ATA-100, and the usual USB, Serial, and parallel ports that was only $95 from a retail shop the first week it came out. It uses inexpensive memory. I think Intel and AMD will make or lose Q1 and Q2 with systems like this, not with high cost P4s or SMP Athlons.
Just one opinion. |
