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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Joseph S. Lione who wrote (61082)	6/9/1999 7:30:00 AM
From: Process Boy	Read Replies (3) \| Respond to of 1573556

Joe L. and Thread - Sharkey's Weekly RE: K6x's and K7 sharkyextreme.com ====================================================================== ... No sighting on the arrival of the K6-3 500 CPU yet, we're still being told that it'll be "seven to ten more days". This is starting to look like our previous hunt for the K6-3 450 CPU, which lasted about five weeks from the first time we mentioned it in the Price Guide to the time it actually arrived in retail. Hopefully we'll have a better idea on the K6-3 500's retail debut soon. Two Million K6-2s Burning A Hole In AMD's Wallet One of the better tidbits that the intentional Sharky Extreme Cliff Diving team brought back from the now completed Computex show in Taiwan last week was the story about a boat load of K6-2s that AMD is currently sitting on. If this information is correct, and we don't have any reason to discount its validity, then this doesn't bode well for our previous recommendation to buy some AMD stock two months ago. (With the motivation being to sell it one to two months after the 'paper launch' of the K7 CPU in July) Two million spare CPUs is serious trouble to AMD's bottom line financial figures for the year if the story is indeed correct. Ironically, for the past year AMD's executive branch has often repeated the mandatory need to hit and maintain an average CPU selling price of $100 for the company to be successful. Apparently $100 per chip is what separates the men from the boys in the CPU biz, allowing companies to enjoy a level of profit that keeps the business firing on all cylinders. Intel for example currently sits at an average price of $113 per part according to their latest sales data while AMD's last public reports indicate that they're languishing at an average chip price of between $84 and $88, a level they've been at for a long time. The K6-3 CPU line, which really isn't that bad of an option for non-gaming oriented PCs, was expected to help AMD's average part cost rally upwards. Unfortunately due to the lateness of the K6-3's launch (it was expected in early January, but arrived in bulk in mid-March) along with the media already hyping the upcoming K7 CPU line, the K6-3 hasn't produced the desired result to AMD's profits. Hopefully for AMD and their shareholders alike, the K7 CPU will be available in enough quantity in August and September that it can help them lift their battered average part price to a more desirable level. If the story about excess K6-2 units turns out to be a reality however, the financial bloodletting that's been occurring the past three months at AMD will look like just a pinprick... ====================================================================== PB