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

To: redbird who wrote (30321)	3/5/2001 11:39:19 AM
From: Pravin Kamdar	Read Replies (2) \| Respond to of 275872

Redbird, Flash is the wild card. AMD's contracts do not entirely insulate them from market price drops. I remember a few conference calls back when an analyst tried to pin AMD down on this point. AMD danced around the issue and I came away with the feeling that the contracts will give them some price protection, but that prices were not written in stone. We shall see. Athlon sales are great. I saw Systemax and Micron 1 Ghz Athlon, and Compaq 1.1 Ghz Athlon PCs being sold on TV this weekend. In Best Buy, I think there were only two Pentium III and one Pentium 4 systems being sold. The majority were Athlon and Duron. Too bad integrated chipsets for Duron have not materialized this quarter. That could have really put us over the top. Duron sales could also have been saved by Gateway acting in their enlightened self interest. Instead, they have decided to fight Dell on Dell's home turf while Dell is sacrificing profit to gain market share. This could be a fatal mistake for Gateway. Had they decided to offer better performance/price with AMD based systems, they could have taken share away from Dell. Pravin.