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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 246.76

-0.5%

Nov 14 9:30 AM EST

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From: eracer	6/14/2006 4:13:53 PM
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AMD's failed product launch: AMD To Ditch Initial AM2 2x1MB Cache Desktop CPUs dailytech.com Not to the surprise of DailyTech, AMD representatives are telling its CPU distributors to play down 2x1MB L2 cache Windsor processor sales in favor of the 2x512KB AM2 parts. Several days ago, DailyTech published the entire AMD July 24th pricing guide complete with price cuts across the board. The price list was surprisingly devoid of AMD 2x1MB cache CPUs, and today we know the reason why. Several US distributors all confirmed the same story with DailyTech, either claiming either a lack of information about the 2x1MB AM2 parts or claiming AMD employees were told to disregard 2x1MB cache desktop parts for the time being. While distributors could not tell DailyTech exactly the reason for the reduction, the cost of running two separate cores and logistics for those cores is obviously eating at the bottom line for AMD. The additional cache per chip means fewer chips per wafers and the additional SKUs means that more marketing dollars must be spent -- and when battling it out with Intel on the pricing front, every dollar counts. Furthermore, AMD can dedicate all of its fab resources to work on a unified design rather than splitting development between two separate cache revisions. AMD's Turion X2 lineup does not contain any 2x1MB L2 cache components.

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