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

To: Jim McMannis who wrote (4873)	8/13/2000 9:16:55 PM
From: Charles R	Read Replies (1) \| Respond to of 275872

<OTOH, seems pretty customary to drop prices in the speed chain when you introduce a new speed grade.> Not if you are Intel. Introduce 1.13GHz and 1GHz pricing goes up ;-) <And at time you lop one off a the lower end.> This is absolutely true. That's why my comment was about perceptions. <I've fully expected AMD to put the screws to Intels pricing model as soon as they started to ramp up from Dresden.> I have said for a while that AMD will undercut Intel in pricing as long as there is quest for marketshare. The point I was making in light of the recent price cuts is that Thunderbirds are leading that attack even at the low-end instead of Durons. The 1GHz pricing doesn't matter since 1.1Gs are shipping to OEMs. <Now we will see what P3 really has left in the tank. I suspect Intel had figured out what was going to happen and the P3-1133Mhz was some kind of ploy.> My take on this forever has been it doesn't matter. Everyone knows Athlons are outshipping PIIIs at the high-end. Since Athlon's introduction, AMD's problem is not and has never been the PIII and Wilamette is not going to be a problem for a few more quarters. AMD's problem has been the incredibly naive single source, trust your competitor chipset strategy. That situation will continue to be tough until an alternative mainstream chipset shows up. Chuck

To: Jim McMannis who wrote (4873)	8/13/2000 9:19:21 PM
From: TechieGuy-alt	Respond to of 275872

Guys (and gals), sometimes we focus too much on the trees and forget to see the forest. I think that there is too much concern on the individual speed grade prices. Unless we also know the volume mix on each grade, we have no idea that the APS's are falling or rising (unless all prices are below the target APS-$100- which is not the case). For the last 3 quarters (straight), AMD's ASP's have been rising. AMD has said that they are shooting for a target ASP of $100. They have said that for Q3 they will rise again. They have also said that Athlon core processor shipments will double this Q (Q3) and again in Q4. A lot of the increments will come from replacing the K6-x, which was a sub $55 ASP processor. Plus they need to capture new market share. I wouldn't worry about the price cuts. I would start to worry if the ASP's do not rise again this Q towards $100 and again in Q4 to $100 or slightly above that. I think that those that are thinking of ASP's >>$100 (that's much greater than for the non math types out there)are just deluding themselves and setting up for a disappointment later. JMHO TG