Dave,
* AMD could do an effective campaign for $50-$75 million, annually. This creates brand awareness, and longevity.
Intel can counter anything AMD says by a campaign 10 times AMD's $50 to $75 million, in addition to their regular advertising.
* The consumer wouldn't be out $10 for nothing, because they would gain a better product. Higher quality should equate to higher demand which should garner higher prices.
You are assuming that the consumer does not know which product is better, wants to spend time watching commercials, is influenced by the commercial, doesn't mind paying $10 extra for this whole exercise.
* AMD should be able to raise ASP by much more than $10, what is the difference between a 1300 and 1400 P4 vs Athlon?
Right now, it is $100, this is before the price cuts reported by the Register and Inquirer. And P4 has not been selling well. Of the $100 difference, a big chunk went for the $300 million ad campaign. If Intel sells combined 5 million P4s in Q1 and Q2, it amounts to $60 per CPU.
* With a product that is superior to P4, and lower cost - you tell me why Athlons aren't COMPLETELY sold out.
Apparently they were sold in Q1. The beginning of Q2 price cuts are a cause for concern about the situation right now.
Joe |
