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Technology Stocks : AMD:News, Press Releases and Information Only!
AMD 203.76-1.1%Nov 21 9:30 AM EST

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To: Paul Engel who wrote (2115)11/13/1997 5:40:00 PM
From: Petz  Read Replies (1) of 6843
 
Paul, Re: "... and the Intel 233 is going for $2 over Q1000 list price at $302, which must mean that the grey market is full of MMX-233's being dumped."

Paul said
Didn't you make the argument just a day or two ago that DEMAND for the K6 had to be HIGH because the Chip Merchant was charging more for it than the advertised list price?

Now Intel's Pentium MMX - 233 MHz is selling for above list price and you have an entirely different explanation for this situation.

Why do you use different explanations for the same phenomenon when they apply to AMD and Intel chips?

Paul, are you so ignorant of retailing? The chipmerchant prices are what you pay for a *single* chip, the Intel prices are for quantities of at least 1000. $2 over Intel's price could not possibly cover their costs of paying their employees, paying rent and maintaining a web site. They do operate on thin margins, maybe 4-6%, but not 0.7%. If they are selling these Intel Pentiums for just $302, they must have bought them for $290 or less, which is below Intel's published price.

I have been watching thechipmerchant.com for several months and I have NEVER seen an Intel chip selling only $2 above its published quantity 1000 price.

Petz
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