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

To: Mani1 who wrote (88629)	1/20/2000 7:04:00 PM
From: Charles R	Read Replies (1) \| Respond to of 1596660

Mani, <Athlon inventory was only 3.5 weeks! This is not high, in fact I think it is lower that industry average which I think is 36 days. > Where do you get the 36 days number? Chuck P.S.: Semiconductor companies hold 30-60 days worth of inventory but that is at all levels (i.e. WIP, finished product at company, product in distribution). From what Jerry said it sounded like he could have been talking about finished goods/distribution and not WIP.

To: Mani1 who wrote (88629)	1/20/2000 7:22:00 PM
From: Greater Fool	Respond to of 1596660

3.5 weeks would be only finished goods inventory. The total cycle time on a product like Athlon would be considerably longer than that. Here's another metric to think about: say the processor selling prices drop 25% a quarter. Then 3.5 weeks in finished goods would mean that the value of the inventory drops 25% x 13 / 3.5 or ~6% as it sits there.

To: Mani1 who wrote (88629)	1/20/2000 7:50:00 PM
From: survivin	Read Replies (1) \| Respond to of 1596660

inventory Mani, Initially, I was very concerned with the apparent 400k glut of athlons. However, after some exploring, I now share your belief that this is a minor issue. No one has included the inventory both gtwy and Hp certainly had on hand pre-Jan. 1st. As Jerry eloquently explained to the analyst who questioned their sales recordings, cpus are not considered "sold" until in the hands of the end user. HP has been selling athons since early Jan. in Sam's clubs and costco. We all know gtwy was ready to launch in early Dec until "reassurance" came from intc. Is it a stretch to assume they had 100k cpus (or more) between them not "sold"?