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

To: Jim McMannis who wrote (12354)	10/9/2000 3:40:49 PM
From: dougSF30	Read Replies (2) \| Respond to of 275872

Jim, exactly... you don't care if the 1Ghz is cut by 20%, assuming that at that same time, a 1.1Ghz is introduced for the old 1Ghz price... and so on... How hard is this to understand? I think JJ is looking to back up his earlier call, rather than properly analyze price cuts accompanying higher speed-grade introductions. Doug

To: Jim McMannis who wrote (12354)	10/9/2000 3:48:58 PM
From: Brian B. Cole	Read Replies (1) \| Respond to of 275872

Re: AMD Price Cuts There are a couple ways you can look at this: AMD sees an opportunity to gain some serious market share while Intel is have High End production problems by doing the following: I) Supply Gateway,Compaq and HWP with High End chips at great prices.Here are a couple possible reasons. a) Reward these companies for carrying AMD products and get consumers to purchase 1 GHZ AMD and 1.1 GHZ AMD over Intel. b) Put some serious heat on Dell. Gateway with a 1.1 GHZ system for $1600.00 looks like a bargain compaired to Dell's High end 1GHZ PIII systems in excess of $2000.00. II) With what appears to be volume production yields on the High-End Athlon chips.. AMD can probably keep margins heavily profitable even with the price cuts.Why not get the product out there and let the consumer try it(Athlon). Just a few thoughts..

To: Jim McMannis who wrote (12354)	10/9/2000 4:28:30 PM
From: Goutam	Read Replies (1) \| Respond to of 275872

Jim, re: Talk of "steep price cuts" are rarely music to wall street analysts. They are very quick to think of diminishing margin and over-supply. They are much more simple thinkers* than most are here.* >   Simple thinkers - yes.       I'd say the price cuts are in line with the introduction of new speed grades. If they are more than normal, the only way to explain it is that AMD is going for more market share. WS will not realize the costs of a Socket A T-bird and Duron is considerably less than the Classic... >   I agree. I can list some more beneficial implications connected to AMD's recent price cuts - higher market share with the introduction of new speed grades -> higher volume -> lower mobo prices, lower chipset prices, increased competition among mobo & chipset makers, better infrastructure support, higher ASPs, Dell, an additional speed grade driven by the higher volume, etc. goutama