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To: f.simons who wrote (4846)	8/13/2000 3:13:42 PM
From: minnow68	Read Replies (1) \| Respond to of 275872

Frank, You wrote "They are also replacing $1200 1 gig AMD chips" I belive you might be confusing Intel and AMD. On Pricewatch, Intel's i Ghz PIII costs range from $1154 to $1638. I have never seen a price for a 1Ghz Tbird of $1200. I've never seen a four figure price for a 1Ghz T-bird. The Low $900's is more like what I'm used to seeing. Mike

To: f.simons who wrote (4846)	8/13/2000 3:49:11 PM
From: milo_morai	Respond to of 275872

Frank, it's simple math sell 4 times as many chips at $500 vs what your where selling at $1200 a chip. You're going to make twice as much money. It's also because AMD has such High Bin Splits they can start to flood the high end. It's very logical. ASP goes up. Milo

To: f.simons who wrote (4846)	8/13/2000 4:13:41 PM
From: Dan3	Respond to of 275872

Re: They are also replacing $1200 1 gig AMD chips.. With 1.05, 1.1 and 1.2 GHZ chips. The ratio of high speed range chips to low speed range chips at AMD is rising, unlike that other company. INTC is replacing $500 733s from 6 months ago with $250 800s. Dan

To: f.simons who wrote (4846)	8/13/2000 4:34:25 PM
From: andreas_wonisch	Read Replies (1) \| Respond to of 275872

Frank, Re: They are also replacing $1200 1 gig AMD chips. AMDs ASPs were in the low $90 range last quarter. All Thunderbirds (even the 700 and 750 MHz models which aren't produced any more) are priced above $90. So why should AMDs ASPs suffer from the price drop? They just need to drop the prices to create more demand for the high speed parts (which Intel can't deliver) and to phase out the low speed, low margin parts. IMO a very logical and good strategy. Even if AMDs ASP stay flat this quarter (which is IMO nearly impossible because of the 3.6 Duron/Athlon parts) they would earn roughly $60 million more from their microprocessor business alone because they plan to sell ca. 700,000 units more. But if we assume that the 7th generation processors (ca. 3.6 million units) are sold at an ASP of ca. $150 (very low guess) and the K6s ASP stay flat at ca. $50 we have ASPs in the $100 range. And that would mean another $70 million in earnings... And now let's imagine what AMDs ASPs would be if they succeeded in creating so much more demand at the >900 MHz range and selling there >1 million units... Do the math for yourself, it would mean killer earnings. Andreas