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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: TechieGuy-alt who wrote (3634)	8/3/2000 11:06:35 PM
From: brushwud	Read Replies (1) \| Respond to of 275872

Chips shipped to OEM's are counted as sold and included in the revenue #. Yes, agreed. Chips shipped to Distributors (for the grey channel etc.) are not counted as sold (and hence NOT in the revenue) till they are actually sold to an end user. This is the right idea, but I beg to quibble. The "gray market" doesn't really mean distributors, it means chips which were sold to OEMs who decided to sell them off instead of assemble them into product. Also, "end user" doesn't mean the guy who carts a box home in his trunk, it only means the distributor's customer, often a small manufacturer. As Toni Beckham said to me in email, "The inventory at OEMs belongs to the OEM as per their respective contracts. OEMs do not have the right of return as do distributors. That is why we do not count the shipments to distributors until they resell the product." Distributors have a contractual right of return which manufacturers do not.