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

To: Charles R who wrote (21822)	12/7/2000 2:45:57 PM
From: andreas_wonisch	Read Replies (2) \| Respond to of 275872

Chuck, Re: The key to maintaining ASPs with this kind of price structure is to ensure that the FSB133 infrastructure ramps quickly and 1.33 and higher speeds take hold fast. Unless volumes of >$500 parts were very low in the past (which is not so unlikely) it will be impossible to maintain ASPs with this move. However, it could be that AMD tries to shift their focus to Athlons now since Durons are still lacking an UMA chipset. Nobody would want a $100 800 MHz Athlon when they could get 1 GHz for $50 now -- and that's still way above ASPs from last quarter. But this strategy only works if they are able to stimulate much more demand for these high-speed parts. It will also be interesting to see how AMD will spin these price cuts (they will probably issue a press release on Monday, that's their usual date for press releases). It could be that they will (paper?) release a 1.33 GHz part or Palomino the same day to calm analysts and investors down. Andreas

To: Charles R who wrote (21822)	12/8/2000 2:03:03 AM
From: Cirruslvr	Read Replies (2) \| Respond to of 275872

Chuck - RE: "Looks to me AMD is solving the infrastructure problem with a brute force approach. The key to maintaining ASPs with this kind of price structure is to ensure that the FSB133 infrastructure ramps quickly and 1.33 and higher speeds take hold fast." I don't see how it can be a brute force approach and how they can ensure 133MHz FSB ramps quickly when AMD's LEAD PARTNER with the 760 chipset won't even endorse the use of a 133MHZ FSB. The extremely steep price drops are disconcerting to me. The practically invisible 1.2GHz Athlon's price was cut nearly 40% and ETAs are STILL slipping, some into the next freaking year when Palomino is supposed to come out. They must have a bunch of 133MHz FSB Athlons stockpiled waiting for thier chipset division to make sure the 760 runs reliably at 133MHz FSB w/o the use of special capacitors, or whatever helps solve the current problem. Ironic, we complain about VIA's inability to come out with a fully working Athlon chipset on time and now AMD has their own problems. AMD pushed some Q3 expenses into Q4 to make Q3 earnings numbers. I hope this doesn't come back to haunt them this Q. Fortunately, expectations for Q4 are only four cents per share more Q3's earnings so AMD has an already lowered bar to pass.