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Politics : Formerly About Advanced Micro Devices
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To: Paul Engel who wrote (47052)1/22/1999 4:03:00 PM
From: Tenchusatsu  Read Replies (2) of 1574005
 
Let's put it this way. With Pricewatch's $153 figure for the 400 MHz K6-2, one of three things may be happening:

1) The price could be a healthy 10 or 20% above AMD's price to the merchant.

2) The price reflects a break-even margin or a loss, but the merchant will make a profit by selling other components with the CPU at regular prices.

3) The price reflects a loss because the merchant is liquidating his stock and going out of business.

If case #1 is true, then the ASP for the 400 MHz CPU is somewhat below $153. If it's case #2, then we can't say much for the ASP, but we can guess that demand isn't terribly high for the K6-2 400 MHz, or the supply is outpacing demand, which is why such deals have to advertised to move the K6-2 off their shelves. If it's case #3, then we really can't use the price to predict the ASP.

Tenchusatsu
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