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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 209.17-0.8%3:14 PM EST
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To: combjelly who wrote (193486)4/14/2006 2:10:04 AM
From: Sarmad Y. HermizRead Replies (1) of 275872
 
>> Simple. AMD has a lower cost structure than Intel. AMD can thrive on an ASP of under $100, just look at this quarter. Intel would be bleeding a river at an ASP of $120. And it isn't like Intel can do like they have in the past, slash prices in areas where they compete directly with AMD and keep prices high in those markets where AMD doesn't compete. There aren't any markets where AMD doesn't compete.
<<

We will see. The pugilists are just now squaring off at their corners. AMD now has another fab's worth of expenses, and revenue just starting to trickle in. Intel makes some profit from chipsets and board.

>> Intel would be bleeding a river at an ASP of $120

Approx 200m computers were sold in 2005. Right ? 40 m AMD and 160m Intel ? Intel's PC rev was $27B. 3/4 of Intel's processors were sold with chipset. And about half ? with mother board. That works to $162/bundle. But chipset and board were maybe $60 (assuming half the systems were a bundle), so it looks like Intel's processor ASP is also around $100. So why would it bleed a river ? or even a rivulet ?

Let's do a sanity check. tigerdirect.com

AMD's lowest priced parts are semprons. price $69 to $129.
Intels lowest parts are celerons. Price $39 to $69.

Let's go to the high end.

AMD opteron price 279 - 769
Intel price 249-669. But there is an odd ball at $1029.

If you can support your case, I'm interested in learning more.
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