Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 37.98

-3.8%

2:23 PM EST

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To: Road Walker who wrote (162671)	3/21/2002 8:38:00 AM
From: Dan3	Read Replies (1) of 186894

Re: That seems to imply that they are not currently the low cost producer I don't think that's what he meant. To me, it seems to question whether or not the market is seeing the competing chips as competitive - and offering up the same unit revenue. The conditional statement turns on whether or not the products are seen as competitive. If they are, then AMD is the low cost producer. If AMD ASPs get anywhere close to Intel's present ASPs (or if it just raises volume at its present ASPs) AMD will make a ton of money. If Intel's ASPs ever get near to AMD's ASPs, it will be in a lot of trouble. If Intel has to drop prices to match AMD's ASPs, it would give up something like 27M [units] x $70 [price delta] in revenue per quarter: Between $1.5 Billion and $2 Billion per quarter. I think that's what he was talking about.

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