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Technology Stocks : AMD:News, Press Releases and Information Only!
AMD 206.55+1.4%9:30 AM EST

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To: Paul Engel who wrote (2126)11/25/1997 5:44:00 PM
From: Petz  Read Replies (1) of 6843
 
Paul, re:<Why do you use different explanations for the same
phenomenon when they apply to AMD and Intel chips?>

Excuse the late reply, I was gone for 8 days.

In my original post I marveled that the MMX-233 was being sold in single quantity for just $2 over the wholesale (quantity 1000) list price. Having watched thechipmerchant.com prices for about six months now, I find that their posted retail price on high quantity parts like CPU's and memory chips is normally 3-7% above the manufacturer's posted wholesale price. So, the expected price of an MMX-233 chip is $309 to $321. Therefore, at $302, the MMX-233 is being sold BELOW its expected retail price.

Anything outside the 3-7% range of markup indicates an imbalance between supply and demand. Thus, the AMD-K6, currently at $295 is 31% above its wholesale price of $225 and above its expected retail price. This indicates that demand still exceeds supply for the K6-233, but not as much as a week ago when the price was $360. OTOH, the MMX-233 is selling now at $308, which is below its expected retail price.

Now, you probably assume that the reason the MMX-233 is so cheap is that no one wants this socket 7 CPU anymore and everyone wants the Pentium II. Sorry, the Pentium II 233 and 266 are both selling below expected retail price.

So you see, I am consistent in my explanation of retail prices. No AMD CPU's are selling below their expected retail price, many Intel CPU's are.

Petz
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