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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 214.11+3.9%Nov 26 3:59 PM EST

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To: Sarmad Y. Hermiz who wrote (189683)3/14/2006 8:06:35 AM
From: pgerassiRead Replies (2) of 275872
 
Sarmad:

The reason HP sells higher performing AMD at the same price is that the lower cost MB and related components add to their profit margins. But you seem to think that they would pass all of their savings to the customer. That is a fallacy. The place to see what prices the market places on CPUs is on places like Pricewatch. There a A64 3000+ 939pin Retail Box CPU (90nm Rev E) is $136. A similarly performing by the model number 3.0GHz 90nm P4 Prescott is $172. Still by most benchmarks, a A64 3000+ 939 (Venice) is a bit faster than a Pentium 4 540 3.2GHz @ 800MHz FSB which sells for $220. $220 is 62% more than $136.

Add in a MB and HSF and on Pricewatch the costs will be $189 (A64 3000+ Venice + HSF + ECS K8T890A (AGP8X/PCI-E/ATA133/Dual-channel DDR400/SATA RAID/USB2.0/LAN /6-Channel Audio)) versus $287 (P4 540 3.2GHz + HSF + ECS PT880PRO-A (1 x AGP 8X/4X 1 x PCI Express Lite slot SATA RAID Audio LAN USB 2.0)). $287 is 52% more than $189. Now add 512MB memory and you get $275 (A64 3000+ Venice + HSF + Abit UL8 MB (AGP 1x AGP 8X/4X 5PCI 2SATA 150 RAID Onboard Audio LAN USB 2.0) + 1GB PC3200) versus $403 (P4 540 3.2GHz + HSF + ASROCK PT880 PRO (Dual DDR1 + DDR2 667 PCI Express / AGP8X 1.5V SATA Audio LAN) + 1GB PC2-4200). $403 is 47% more than $275. So the price difference rises as the MB and memory are added. Be careful to compare MBs with the same features and memory needed to keep same performance else you stop comparing apples and compare apples to cherries. A P4 540 on a uATX MB using PC2100 is going to run much slower than
on a ATX MB using PC2-4200.

My computer at home has a A64 3500+ Venice which is faster than a P4 670 3.8GHz 800MHz (PC2-4200) by benchmarks. Thats $192 versus $589 which is 207% higher.

So similar performance nets Intel 62% more than AMD. OEMs get larger discounts from Intel than AMD.

Pete
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