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

To: RDM who wrote (11339)	10/3/2000 8:46:15 PM
From: niceguy767	Read Replies (2) \| Respond to of 275872

RDM: "Relative to expectations, we have seen a pretty slow pickup in demand for microprocessors in September," said Mr. Osha. "Normally this time of the year is when things get better, which is not evident in the past four weeks." Comment: Haven't seen one analyst allude to the possibility that INTC's Q3 shipments of microprosseors will likely increase over Q2, yet revenues will decrease??? Doh,wonder why??? Nor have I seen one analyst allude to the possibility that AMD's unit shipments may increase and at the same time, so also will thier revenues...Doh, wonder why??? Could one possible answer have to do with the fact that global Q3 PC shipments continue to grow, thus both INTC and AMD's units shipped continue to grow, but because INTC has had to cut deals to remain competitive with the "spry Athy", margins at INTC have declined (i.e. declining Q3 ASP's)whereas AMD's transition from K6 at $45 to K7 at $175 continues at a rapid pace in Q3 (i.e 80% k6's in Q2, 50% K6's in Q3, 10% K6's in Q4)resulting in increasing ASP's at AMD for the foreseeable future...This INTC conundrum is likely to worsen in Q4 as AMD's K6 to K7 transition opens up enormous AMD margins that can be utilised for continuing price cuts while the Athy moves relentlessly up the speed gradient... Personally, I wouldn't want to be a competitor of AMD at the moment...AMD is lean and mean and in battle dress...Many of its competitors are currently flabby, low on ammunition and still in their bedclothes!!!