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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: The Duke of URL© who wrote (125910)	1/25/2001 9:06:26 PM
From: Dan3	Read Replies (1) \| Respond to of 186894

Re: Let's see now. AMD's ASP is 80. They are going to reduce What you are missing is that AMD's platform costs on the low end are dropping, while Intel's are staying the same. So AMD leaves their chip prices the same, but their customers see a $40 reduction in cost. Intel has to make that up. Meanwhile, on the high end, Intel's platform costs are rising as P4 replaces P3, while AMD's are staying the same or dropping slightly, so AMD leaves its prices the same, while Intel has to cut prices by $200 for their customers to see constant prices (to account for mobo + RDRAM differential). That's why AMD's response to Intel's recent 30% to 40% prices cuts was "we're OK where we are". And did you notice that Intel has had to start cutting its mobile chip prices too? Servers and, for the most part, notebooks are still easy money for Intel, but notebooks are starting to wear away at the edges. And CPUs are fungible -so corporate desktops don't do Intel margins much good. When retail desktop CPU prices are cut, corporate CPU prices get cut too. Dan