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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 209.92

+4.4%

10:48 AM EST

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To: AK2004 who wrote (51419)	8/16/2001 10:13:46 PM
From: Petz	Read Replies (2) of 275872

albert, thinking of your post about how lowering CPU costs barely lowers system costs, especially in a low demand environment, I think I've come up with a reason that CPU prices will abruptly stop dropping very soon. Simply put, M$ Windows XP and Office XP will cost the OEM's more to put on their machines than the existing Windows ME/Office 2000. Also, LCD displays are becoming commonplace. In addition to stimulating demand for new PC's XP will make it ridiculous for OEM's to build PC's with $50 CPU's when the basic box+software+drives+motherboard+memory+LCD disply will cost $750. I think the OEM's will stop pushing for $50 CPU's because they will be able to make enough money marking up the new OS and LCD screens. <rant> It is totally ridiculous that OEM's and retailers are pushing 1 GHz Athlon systems because they don't want to "embarass" Intel, when they could sell the same system for $40 more with a 1.33 GHz CPU. I don't understand why 1.2 and 1.33 Athlon systems don't outnumber 1 GHz and less systems by 4 to 1. And you won't see a 1.4 GHz AMD system next to a 1.4 GHz P4 system.</rant> Petz

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