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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 215.18

-2.1%

Dec 2 3:59 PM EST

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From: dougSF30	6/11/2006 12:30:59 PM
	Read Replies (1) of 275872

Conroe forces big X2 price cuts on July 24: hkepc.com ... On 24th July, Athlon 64 X2 would drop 35% to 50% to against Conroe, while Athlon 64 would drop 20% to 30% to against Pentium D. To save the low level market, Sempron would also drop 10% to 15%, similar to the drop of Intel Celeron. The final drop would be announced next week. Although AMD maintained a small profit of 4 billion US dollars in the past year, the huge price cut is totally unexpected and risky. In addition to the need of expanding Fab30 and Fab38, the price cut would definitely give AMD a great financial pressure. Yet it is the last weapon to AMD right now. The only hope is the completeness of Fab36 in this year, with 65nm process to raise the productivity and lower the cost. Main board manufacturers welcome to the price cut. But they are still more optimistic to the upcoming Intel platform and just looking forward to the response from Intel. Intel takes the advantages of their resources and technologies in the war, AMD have no way but price cut to against Intel till the ready of AMD K8L architecture.

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