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

To: Eric K. who wrote (122683)	8/21/2000 8:58:48 PM
From: Road Walker	Read Replies (3) \| Respond to of 1578453

Erik, re: "I'd much rather sell 35,000 1 GHz P3s for $1100 then sell 350,000 Athlons for $500, especially when it costs me $60 to produce these parts." Thanks for the post. I glad to finally hear from someone who knows exactly how many 1G processor AMD and Intel are going to sell. I won't even ask how you got your inside information, you are so confident I know that you must be correct. Good work, I'm selling all my Intel tomorrow, John

To: Eric K. who wrote (122683)	8/21/2000 9:52:00 PM
From: tejek	Read Replies (1) \| Respond to of 1578453

I'd much rather sell 35,000 1 GHz P3s for $1100 then sell 350,000 Athlons for $500, especially when it costs me $60 to produce these parts. Eric, I understand that you making a point but why do these numbers matter if you are demand constrained? Intel does not have to work at selling all its chips.....they are already sold. As far as the different numbers are concerned, the only additional cost to Intel for selling 350k vs 35k is shipping costs.....and I can't imagine that is a big number. Your argument seems to make more sense when looking only at AMD's marketing/selling efforts. It appears that AMD is having to cut prices to sell all its inventory.....unlike Intel, they could end up with an inventory overhang....so they have to push their product. That means more selling costs....so the best strategy for AMD is the one you propose...selling as many of your high end chips as possible. There is another point that John made...which is that we talk on the two AMD threads about how speed sells. But John is saying that Intel's reputation may be more important than speed. And under the current scenario, he may be right. Certainly Dell is not willing to forsake its relationship to buy from AMD. And there must be others or AMD would be sold out as well. Its not a big deal...we all know that AMD has to continue to work harder to get its reputation back up to par. But its something to keep in mind. ted