5dave22:
" but I see no silver lining for AMD. Either they had to slash prices to a $75 avg just to move the damn things (and worse, probably stuffed) and INTC was able to retain a decent ASP (unlikely) - or they're both at rock bottom, and that's a battle AMD will have a tough time winning. Just to stay afloat, AMD will have to slash prices further due to scale, which will take them into the red again - and investors will run faster than you can hit sell."
INTC can only win this battle if the P4 flies. The P4 has a higher cost structure and seems to have been ill-fated from its intro. last Nov. For the P4 to have even a chance to fly over the next 6 months, INTC is going to have to eat HUGE expenses...Looks like a bad scenario shaping up for INTC over the next 6 months which no doubt will have its spillover effect on AMD...The only positive out over the next 6 months from my vantage point is for the surfacing of some compelling evidence to support a major snapback in worldwide PC demand. Nothing like worldwide demand growth to ease ASP presures on both AMD and INTC...Just no other solution to today's woes, it seems.
"Further, with Durons at and over 1 gig, who really needs an Athlon (classic) anyway."
There is always a market for top end product. It's the American way!
"Again, ASPs don't can't raise at 1/4 the rate that they fall, and AMD has no new product to combat this (at least in the consumer desktop space). Hopefully they can get more of the mobile market, but it's always catch up for this company."
A growing global economy in 2002? and fruits from all those AMD patents might just catapult AMD into the undisputed lead once and for all.
"It's really a shame. Some consumer marketing, consumer demand, brand recognition, education to the consumer, would have helped tremendously - and we wouldn't be flirting with the teens again."
AMD's market share is increasing and AMD has posted a profit in the worst environment seen in this industry according to Mr. Sanders. Besides, if Mr blue pipes and orange men, with its arm lock on distribution channels and its bottomless marketing pockets joins AMD in flirting with the teens next week, it may suggest that AMD's "generic" marketing campaign in this environment is not as bad as it may seem. |
