Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: kash johal who wrote (34101)	7/8/1998 8:23:00 PM
From: gnuman	Read Replies (2) of 1571198

Kash, re:ASP's I think you can make a case that ASP's will increase in Q3 While there was good unit growth in Q2, too much of the product was K6. There is probably a lot of inventory of this product in the system, and their ASP's are probably less than $70. 2.2M K6 units at $70 and 0.5M units K6-2 at $130 fits the Q2 numbers. (Just my guesses, though). The system will probably flush out the K6's in some real cheap boxes. I think there is a market for the K6-2's. Clearly Compaq, IBM and HP would prefer these in their low end product. If AMD were to only sell 4M units but change the mix to say 1M K6's and 3M K6-2's, I think the ASP would grow. Even if the K6 sold for $60, and the K6-2 for $120, that would raise the ASP to $105. It would also generate $420M CPU revenues. The ASP's may be somewhat lower, but it looks like the product mix going forward is the real key.

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