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

To: f.simons who wrote (4824)	8/13/2000 12:15:42 PM
From: steve harris	Read Replies (1) \| Respond to of 275872

Frank, re:Is it even remotely worth considering whether these prices have a few folks concerned about profits or margins? Probably not. Correct. I am not. Are Intel investors concerned that Intel underbid AMD's price for supplying Pentium 3 processors for Microsoft's game box? steve

To: f.simons who wrote (4824)	8/13/2000 12:18:13 PM
From: milo_morai	Read Replies (1) \| Respond to of 275872

Frank no, because AMD is owning 850Mhz and up so that's where they are volume shipping. So ASP's are going up even with price cuts. AMD is cutting prices as it can delivery even more volume at these speeds. Milo

To: f.simons who wrote (4824)	8/13/2000 1:30:40 PM
From: hmaly	Read Replies (1) \| Respond to of 275872

Frank Re...<<<<<Is it even remotely worth considering whether these prices have a few folks concerned about profits or margins? Probably not. <<<<<<<< Frank, we had a very similar discussion back in Jan. when AMD cut prices just before introducing the <900mhz cpus. The argument then was that by lowering the price on the high end, one can raise the sweet spot mhz, and because Intel can't supply a great percentage of cpus above 900 mhz, AMD will increase their percentage of market. The result was that AMD supplied 90% of the retail market for 1 ghz cpus. If AMD raises the sweet spot to >900 mhz. Intel will again lose market share. Also because of the Duron, it probably doesn't make any sense to pay $900 for a 1 ghz T-bird when you can overclock a $100 Duron to 950 mhz. The $500 price is just accepting reality, as well as tightening the screws on Intel.