Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 217.91

+0.9%

Dec 5 9:30 AM EST

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To: Bill Jackson who wrote (61314)	10/31/2001 5:27:30 PM
From: TimF	Read Replies (1) of 275872

One cannot lose a little bit on every CPU and make it up on volume. AMD is not doing that. They are selling the chips above the marginal cost of production. The overhead makes for a loss. Increased unit sales with static ASPs would make them profitable so they could make up for it in volume as long as 1 - They could produce more chips (and they will gain the ability to do this as Dresden ramps) and 2 - They could sell more without even lower ASPs (this is the important question, the answer depends a lot on how well the economy and the PC market in particular do). Tim

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