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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 215.39-0.1%10:53 AM EST
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To: chipguy who wrote (247681)2/13/2008 9:00:27 AM
From: pgerassiRead Replies (1) of 275872
 
Chipguy:

Its a shame you like to put words in other people's mouths. Its sad that when discussing CPUs and their margins, you would like to include divisions that sell memory, modems, wireless devices, internet hosting and all of the other businesses that Intel acquired over the years that were not part of building its cash cow CPUs.

And you must be crazy to think INtel wouldn't raise their CPU prices significantly, if AMD leaves the CPU business or goes bankrupt. They used to have ASPs over $200 in the 1995-2001 (at least) period.

"We believe Intel ASP dropped below $200 in the fourth quarter of 2000 for the first time since we began tracking ASPs in 1995. We expect overall ASPs to recover in 2002, but will not return to the $200+ levels of the past."

findarticles.com

You would think that a $100 rise in ASP would be the least Intel would do without a pesky AMD to contend with. Even if you neglect the increased volume, $100 ASP rise times 60 million CPUs is $6 billion added to both revenue and gross profits. Using Q4/07 as a base, we get revenue of $14,852 million and gross profits of 10,432 million. Thats a GM of 70.2%. And thats before taking out the GM lowering divisions selling memory, Itaniums, wireless and such.

Pete
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