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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 206.14-4.1%Nov 25 3:59 PM EST

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To: Dan3 who wrote (84807)7/13/2002 7:34:15 PM
From: Dan3Read Replies (5) of 275872
 
The next step for AMD

For some reason, be it chance, a lack of resources at traditional OEM's, or extortion by Intel (or a combination of the 3), AMD has been blocked from offering its products to consumers.

There are no "corporate" AMD desktops or servers, there are no Notebooks taking advantage of DDR or even average graphics controllers.

I believe that AMD needs to offer a reference line of PCs, Notebooks, and servers. Such a line should actually help, not hurt, sales by existing OEMs and whitebox builders by establishing a retail system price against which others can market their products.

It would be critical that AMD offer superb engineering, service and support in its direct line, and price it accordingly. Supporting such a line would provide AMD the chance to implement an on-line database of issues and solutions, as well as a download site for drivers and patches (both of which could then be pointed to by other OEMS and whitebox builders as a source of on-line support).

Once a set of high end notebooks had been engineered and put into serial production for AMD, those same notebooks could be offered by OEMs and whitebox builders. The same would go for desktops and servers.

HP, Sys, a whitebox builder, etc. could point to AMD's specs and price and clearly demonstrate a 30% (or greater) savings, which might actually increase the sales for the OEM's and whitebox builders. Buyers who wanted to buy from a multi-billion dollar source, that offered service contracts, etc. could pay the premium and buy the AMD box.

Others could go to a non-AMD source, and buy essentially the same system (without the AMD service) for a lot less - and perceive that they were getting a great deal, since they'd be paying a lot less than the advertised AMD price for such a system.

There are also a few superbly engineered AMD systems out there that are not getting the visibility they deserve. AMD's direct sales web site could offer, and service and support, systems such as APPRO's 1124i. AMD would charge what APPRO charges, plus something like 50% (for the AMD service). This could provide assurance to potential customers that are concerned that APPRO (as an example) is too small, and that they must buy from a larger company. Others would see the same product available from APPRO (for example) at 33% less than AMD sells it for, and perceive the APPRO as an even better value for the money product.

Note: x + 50% = y and y - 33% = x. Those weren't typos.

AMD's ads would always compare AMD to Dell, and only show Dell configured with the cost of adding an AMD level of service. Given what you have to pay Dell these days to get and service and support with your purchase, it wouldn't be hard to beat Dell prices (A 2ghz P4 Dell Optiplex, including service and a 17" flat screen, goes for $2,800, a 2.4ghz takes it over $3,000).

AMD could easily offer a 2200+ system for $2,795, make the prices the OEMs and whitebox makers charge look like great deals (helping their sales), and still beat Dell.

The BOM on a system like this would be less than $1,500, leaving plenty to fund the world's greatest service and support.

I'd love to see the ads:

If you think of yourself as someone who operates at the level of "Dude, your getting a... " anything, then you deserve a Dell. For the rest of us, there's a much, much, better way to go...
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