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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 231.80+1.7%3:59 PM EST

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To: TechieGuy-alt who wrote (148452)1/20/2005 12:17:56 PM
From: eracerRead Replies (2) of 275872
 
I was talking about "fair pricing" from a consumer perspective relative to what is currently available on the market.

Why is everyone shocked at these prices? They are lower than most expected, but certainly not out of line with the performance Smithfield is expected to offer. The pricing doesn't mean Smithfield is broken, or Intel is sabotaging AMD's dual core offerings by "giving away" Smithfield.

Yes, a 2.2GHz or 2.4GHz dual core Athlon 64 FX/Opteron at $700+ is going to outperform Smithfield. And $700 doesn't look bad compared to AMD's current high end single core offerings either.

But a $700 A64 FX/Opteron will be limited to targeting the performance market, while Smithfield could easily find itself in mainstream desktops.

If you don't think AMD should sell dual core CPUs for under $700 then don't expect AMD to capture even 5% of the desktop dual core CPU market this year, especially if Dell offers these as home/small office desktop systems. Dell and Intel have a long history of successfully selling inferior performance to this market.

Intel will have no problem recapturing the extra cost of production with the $100-$150 price premium dual core will require. Many home/small office computer buyers will be tempted to buy "two CPUs for the price of one" or a CPU running at a "combined speed of 6GHz" all for the price of a mainstream system.
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