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

To: steve harris who wrote (73870)	10/4/1999 8:35:00 PM
From: Yougang Xiao	Read Replies (4) \| Respond to of 1572335

How does this refund affect AMD's bottom-line: Both IBM and CPQ's Athlon machine sold at BBY have a 100 USD refund from AMD: This ad is taken from this week's ad from BBY: <<$1299.99 After $200 Mail-In Rebates, $50 System Savings and $400 Prodigy Instant Savings* IBM AMD Athlon? 550MHz Processor Computer with 17" IBM Color Monitor ? 96 MB SyncDRAM memory ? 20.4 gigabyte hard drive ? 56K V.90 modem ? 200MHz front side bus ? 512K level 2 cache ? S3 Savage4 AGP 2X graphics ? 8 MB SyncGraphics video memory ? 4X CD-ROM drive ? 6X DVD-ROM drive ? Infinity© speakers ? 17" IBM .28 monitor (15.9" viewable image size) $650 Total Savings: $1949.99 - $100 AMD Athlon? Mail-In Rebate** - $100 IBM Monitor Mail-In Rebate -$50 System Savings = $1699.99 - $400 Prodigy Instant Savings* = $1299.99 (590/C71) Register in store for 3 years of Prodigy Internet Complete? service, at a monthly rate of $19.95, and receive $400 in instant savings on the date of signup and product purchase only. Additional conditions and restrictions apply. See the Fine Print for further details on this offer. *Capable of receiving 56K downloads. However, current>> ++++ Look like this refund is AMD's responsibility to bear. Aside from big disount to OEMs like IBM and CPQ, AMD has to give out another 100 bucks if Athlon machine owners chose to send the refund request to AMD. Since the ratio of refund is hard to predict, the real Athlon ASP should be negatively impacted, but how much would be? Are they going to assume that only 50% consumers care to seek refund?