Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 210.78

-4.8%

Dec 12 9:30 AM EST

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To: f.simons who wrote (46611)	7/10/2001 1:55:34 PM
From: AK2004	Read Replies (2) of 275872

Frank re: Did Intel get to be the gorilla by shooting for the lowest ASPs that would keep it in business? I believe so even though that was a while back I will give an example of what market share would do for amd. Let say amd sells the chip for $70 at cost where $50 fixed and $20 variable. What would happened if amd would sell 2 chips at $50/chip? Well, the cost would be 2*20+50=90 which is a profit of 10 or 5/chip. Hence asp dropped from 70 to 50 but the profit went from 0 to 10. And let's not even talk about infrastructure :-))... OTOH lets talk about it. Without market share amd would not be able to get the support of mb/chipset makers as it is getting now. Should we get into brand recognition? Obvious? ok what about cost of development of future products and how it is written off? so what you propose is that amd would take $5 from the market and go out of business. While you might desire so we have different plans for the stock.... is amd hurting intel in a process? You bet it is is it hatred of intel? Not really, it usually defined as a healthy competition. Regards -Albert

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