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

To: f.simons who wrote (4830)	8/13/2000 1:12:14 PM
From: kash johal	Respond to of 275872

Frank re: price cuts Well tbirds probably cost $50 or so to make. An average price of $150 or so makes tbirds VERY profitable. Should help AMD reach its goal of $100 ASP for all CPU's. regards, Kash

To: f.simons who wrote (4830)	8/13/2000 7:43:56 PM
From: Goutam	Respond to of 275872

Frank, >Does it make it harder for AMD to cut prices again, and still make money?> It all depends on what kind of Bin splits and overall yields AMD can achieve with its Athlons(Thunderbirds & Durons). I belive AMD can push TBS' MHz a lot higher comfortably. IMHO, AMD has been down binning its CPUs to match the infrastructure support. I believe there are two main obstructions in AMD's path in moving consumers to higher MHz. They are the lag in the Infrastructure partner's support (higher MHz mobos, volume, and chipsets) and Athlon's high power consumption. Every time there is an incremental progress is made in these two areas, AMD can take advantage of the progress by reducing the prices to improve its ASPs, and to influence its Infrastructure partners for increased support. <If the higher price company is selling everything it can make, does it make more sense to lower prices as production increases?> True, but AMD needs a comfortable market share to grow. And it's not going to come cheap when the competitor is Intel. Also, only way AMD can garner more support from its infrastructure partners (for increased production of mother boards, chipsets, etc.,) is by showing aggressiveness in seeking the market share. IMHO, once the Athlon Infrastructure reaches a critical mass, AMD can slow down the size of its price reductions as long as demand exceeds production. Goutama