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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Gopher Broke who wrote (122512)	8/20/2000 8:11:22 PM
From: Road Walker	Read Replies (1) \| Respond to of 1576296

GB, re: If AMD sold the 1GHz Athlon at $50 would they not sell all they could produce? So the question is not really whether they can sell them but at what ASP. No. There is a finite number of PC's that will be sold in the 3rd & 4th quarter, and a finite number of microprocessors in them. AMD and Intel could lower their prices to $5, and you are still limited by the number of PC's sold. There are tons of new nifty products this Christmas competing for the consumer dollar. Digital cameras, MP3 players, handheld PC's, Sony PS2. All that stuff competes with PC's, "Martha, should we buy that new Sony game player that the kids want, or should we get a new PC?" Consumer spending is slowing, look at the results from the retailers. The microprocessor is about 25% or less of the PC cost, so lowering the price doesn't effect the price of the PC that much, especially with other components going up in price. John