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

To: Cirruslvr who wrote (13636)	10/13/2000 1:07:48 AM
From: Joe NYC	Respond to of 275872

Cirrus, Interesting that AMD felt it needed to reduce prices this much against Willy. There were reports that Dresden output is 900 MHz and up. If you look at the prices, the 900 MHz part is $180, which is only slightly below AMD's Athlon ASP. With Tbird production going to 0 in Austin, the result of the price cuts will probably be an unchanged ASP of Athlons. But the prices should bring a lot of new demand, which AMD will need to sell additional 2 million chips and gain market share from a tough competitor. Joe

To: Cirruslvr who wrote (13636)	10/13/2000 12:43:39 PM
From: Charles R	Read Replies (1) \| Respond to of 275872

Cirruslvr, <Interesting that AMD felt it needed to reduce prices this much against Willy. > It is a perception game. AMD, todate, lives in consumer space where MHz sells. Also, the need to make hay while the sun shines is probably the key driving factor. AMD can really gain significant market share for 3 more quarters. After that things are going to be more uphill. The challenge then would be to hold market share until Hammer family debuts. <Of course, the low prices could be a result of great binsplits at Dresden. > I think this has to do more with the availability of decent platform to ramp more than anything else. With KT133 and AMD760, AMD for the first time has desirable mainstream desktop/workstation platforms. As far as bin splits are concerned, I don't think the bin splits got any better at Dresden recently. I think it is more a result of Athlon production moving to Dresden. Once Mustang-cores kick in I doubt if there is going to be any volume under 1.1 or 1.2G. So, this ramp is very timely. <The low prices will steal some sales from Intel. > I would be surprised if Athlon sales do not grow at least 50% this quarter. From ~2M to ~3M. <A 1.1GHz Athlon system costs $90 less than a 1GHz PIII system at Gateway.> Let's see if Gateway uses that edge to blast its competition out of the Small Business segment. Chuck