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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 214.11+0.3%11:12 AM EST

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To: kash johal who wrote (35244)4/8/2001 10:13:34 PM
From: Joe NYCRead Replies (1) of 275872
 
Kash,

I have some idea how the grey market operates, I just have some doubts about the $180 price in the grey market for 1.3 is the norm, or if it happened at all. It may be just the opinion of 1 online vendor. And I have some doubts about your example of a number of 10+% markup resulting in AMD receiving $140 and consumer paying $220.

The price $220 that you see on PriceWatch is from the most cut-throat vendors with the slimmest margins. I doubt they have any profit on those parts, and I am pretty sure the profit is not $20+. The price of $220 is to bring in the crowd ov visitors, and the profit is made on shipping / handling and on lower profile parts such as CD ROM, floppy, case, HD. When people build their computers, they look up good prices on motherboard and CPU, and may just go with the same vendor for the other parts, because multiple shipping charges would add too much to the price of computer if you bought every part from a different vendor.

Joe
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