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

To: jcholewa who wrote (20048)	11/21/2000 1:38:06 PM
From: Joe NYC	Respond to of 275872

JC, > How do you think AMD was able to sell all the 600 - 1,100 MHz chips they could make so far? By pricing them at ridiculously low levels. At such a low volume, maybe that's a far more cost effective way to sell them than keeping the prices high and spending the price difference on TV advertising. Joe

To: jcholewa who wrote (20048)	11/21/2000 1:51:42 PM
From: Daniel Schuh	Respond to of 275872

JC, $250 ghz Athlons may seem ridiculously cheap, but only compared to ghz cumines. It's not that cheap relative to where the bulk of cumine production lies, any PIII below 900 mhz is cheaper. It's also not that cheap compared to AMD's cost of production. Durons are another story, of course. An alternate point of view would be that Intel's prices have traditionally been ridiculously expensive. Scott posted this article a while back on the other thread, I think it makes a good argument on the price front. overclockers.com , noted by stribe30 in Message 14602537. Cheers, Dan.

To: jcholewa who wrote (20048)	11/21/2000 2:38:24 PM
From: redbird	Read Replies (1) \| Respond to of 275872

Thats "ridiculously low, yet very profitable, levels". "> How do you think AMD was able to sell all the 600 - 1,100 MHz chips they could make so far? By pricing them at ridiculously low levels."

To: jcholewa who wrote (20048)	11/21/2000 2:48:32 PM
From: Goutam	Read Replies (1) \| Respond to of 275872

JC, > How do you think AMD was able to sell all the 600 - 1,100 MHz chips they could make so far? >By pricing them at ridiculously low levels. Well... AMD prices may look ridiculously low when compared to Intel's expensive (used to beobscene) prices. Regarding this TV advertising stuff - at the present volume of AMD CPUs, low prices are more effective than TV campaign. An effective, and intensive TV advertising to target entire consumer segment would cost at least $150 Millions - $200 Millions per quarter. That comes to about $17 to $22 per CPU. Besides, Intel can easily double its efforts on TV advertising to drown any AMD's efforts. It's better for AMD to focus on promoting its wares in the print media, and on price/performance than wasting money on TV campaign. goutama