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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 231.80

+1.7%

Jan 16 3:59 PM EST

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To: pirasa2 who wrote (238475)	8/9/2007 11:41:21 AM
From: pgerassi	Read Replies (1) of 275872

Dear Pirasa2: That is a plain myth. Most desktops are heavily weighted towards the low end CPUs. A $750 HP TL-56 laptop doesn't have many expensive components in it except the CPU. Even 17" laptop displays aren't that expensive over 15.4" ones. The difference in the laptop prices for such screens is explained by typical configurations having twice the memory and twice the disk drives than the 15.4" display notebooks. To get a better idea of what HP pays for a mobile CPU lets look at how much more HP charges for a TL-64 than a TL-60 in a notebook (DV6000Z), $50 (+75 to +125). The 1000 list price difference is $43 (263-220). $50/$43 = 1.16. Lets us check that this differential holds true for the other choices. A TL-56 has a +30 price or about $45 less the TL-60. The AMD price difference is $36. $45/$36 = 1.25. A TK-53 goes for $30 less than a TL-56 where a TL-52 is $30 less than a TL-56 in the price list, so thats 1.00. Given these prices, the discount HP gets looks to be more like 20-25%. 0.75 * $154 - $354 = $116 - $266. Not even close to your $40-50 assertion. Even if HP doubled the prices it gets for CPUs like they do for replacements and upgrades, it still would be 58% of 1000 unit tray pricing or $90 - $206. Even the internet price of a TL-52 (Newegg) is $159.99 or $6 above the 1000 unit price. Face it your $40 - $50 price is when they dump obsolete inventory, not new parts. Note that HP's memory and hard disk prices aren't twice what internet users pay either. Its more like 10% more. You could ask Reseller Mike what the 100K unit price discount are typically from 1K unit prices. I would be surprised if its more than 30 - 40%. Pete

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