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

To: Charles R who wrote (12696)	10/10/2000 8:50:21 PM
From: porn_start878	Read Replies (2) \| Respond to of 275872

I don't know when and on what volumes the XBox will ship, but intel may trash a part of it's inventorie in it... ...well it's no more than a cute idea that won't materialize, when is the X-Box? Max

To: Charles R who wrote (12696)	10/10/2000 9:12:12 PM
From: AK2004	Respond to of 275872

Charles I am not saying that it is likely or unlikely but rather that that is analysts concerns now. What would stop oems? agreements with intel - dell vs compaq is a good example Regards -Albert

To: Charles R who wrote (12696)	10/11/2000 1:47:20 AM
From: Petz	Read Replies (2) \| Respond to of 275872

The bottom line on a price war is this -- AMD is perfectly willing to receive 70% of Intel's ASP by selling at a price 30% below iNTEL at every speed grade. Will Intel lower their desktop ASP from $175 to $150? Great! AMD's ASP will rise to $105 for an extra $90M of pre-tax profits, not counting the increased sales in Q4 vs. Q3. Intel will lose 30Mx$25 or $750M of pretax profits -- that's nearly a third of their operating income! Will Intel lower their ASP from $175 to $135? Great! AMD's ASP still rises slightly to $94.50, still grows sales and profits. Intel loses $1.2B of their profit, a cool 50%. And none of the above considers the fact that Intel can't do a blessed thing about prices above 1 GHz. AMD is free to pick whatever price they want to sell at. $250 would be about right to match demand, and that will raise AMD's ASP and profits even more. Petz