Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 231.83

+1.7%

Jan 16 9:30 AM EST

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To: Petz who wrote (227671)	3/7/2007 1:04:10 PM
From: Rink	Read Replies (2) of 275872

Petz, re: Here's what I don't get about the "neglecting the channel" remark. So if AMD made a bunch of parts for DELL and DELL didn't make their sales targets, why couldn't they just sell them in the channel? Just a scenario: As long as the parts are reserved for Dell they can't sell them into the channel. It looks like Dell has taken less AMD chips than anticipated two quarters in a row. If this continues someone (probably AMD) should see an increasing inventory starting in Q4, and continuing into Q1 (larger miss). Reserving parts for Dell effectively makes them unsellable until Dell gives a sign that they won't need as many after all. The channel got spurned starting I think starting already in Q3/06 and a part of it turned back to Intel. As a result AMD might have lost some sales slots to Intel and now it left holding the bag as they can't sell the unexpected additional inventory as easily into the channel. Regards, Rink

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