Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 231.83

+1.7%

Jan 16 9:30 AM EST

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To: Elmer Phud who wrote (138138)	10/29/2004 3:46:00 PM
From: Dan3	Read Replies (2) of 275872

Re: Otherwise, Intel will simply come in and undercut (even at a loss) Assuming good yields, I put Intel's costs pretty close to $10. You claim Intel would sell processors for <~$10? I don't think so... Dropping price from $150 to $10 on each of 45 million processors per quarter would drop revenue by $6.3 Billion per quarter while leaving costs unchanged. Were Intel's profits more than $6.3 Billion last quarter? No? Then dropping prices to $10 would have them making losses.

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