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

To: Charles R who wrote (14187)	10/16/2000 3:07:25 PM
From: Pravin Kamdar	Read Replies (2) \| Respond to of 275872

Chuck, What? How do you figure that? Not a single major OEM has adopted Duron for sale in lead markets. 600 and 700 Mhz Celerons sell for $75 and $130, while the Duron counterparts sell for $45 and $65 (per Pricewatch). The argument that a $25 difference in motherboard price is limiting Duron acceptance in garbage. $65 + $25 = $90 is still 30% lower than the $130 cost of the 700 Mhz Celeron. The market doesn't know Duron from shinola, and AMD does not seem willing to allocate any marketing dollars to establishing the Duron brand. For AMD, word-of-mouth is good enough. Bit too strong, don't you think. Not at this time it's not. I hope that changes. Rumors say Athlons below 900MHz will be obsoleted by the end of this month. If true, does 900MHz-1.2G seem like a wide frequency range to you? That's not the point. AMD could market Athlon accross the entire Duron + Athlon range if the wanted to, and make more money in the process. The point of having Duron, I believe, is to compete in $399, $499, $599 kind of data points. Leave this to market to VIA. Why chase the table scraps when you have the best technology? Intel and AMD need segmentation for the same reasons. To improve ASPs by creating differentiated brands. Intel needs the Celeron vs P3 segmentation so as not to cripple P3 ASP, due to the speed overlap in the two lines. AMD is not in this situation. Pravin, that seems to be rather "light" argument. Are you sure it is not the pain of margin that is talking here? Chuck, I respect your opinion, but I stick by what I am saying. And, yes, the margin pain is significant. I'm just trying to figure out how AMD could better position themselves. Pravin.