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

To: TimF who wrote (30733)	3/8/2001 12:53:42 PM
From: Scumbria	Read Replies (2) \| Respond to of 275872

Tim, AMD is in a position where they can push the low end out of reach of PIII or Celeron. Scumbria

To: TimF who wrote (30733)	3/8/2001 1:01:54 PM
From: combjelly	Respond to of 275872

"I don't think P3s and Celeron's cost too much to produce." It depends on how many PIII's get thrown for every one that bins out at a speed that sells...

To: TimF who wrote (30733)	3/8/2001 2:16:45 PM
From: Joe NYC	Respond to of 275872

Tim, You are referring to the P4's cost of production being higher then that for Athlons and Durons right? I don't think P3s and Celeron's cost too much to produce. I think the cost of production has so many meanings that you will never get a simple answer. What is the cost of production? Is it just the cost of wafer + cost of the operators in the fab + cost of the testing or assembly? Or do you add the cost and depreciation of the fab? Do you add the cost to develop the process (and all the R&D associated with it). How about the processor design R&D? How about the cost of marketing? How about the cost of unused fab space during the time of slump? If you combine all of these, the costs are higher. If AMD volumes go up, overall unit costs will go down, as the fixed costs are spread over more chips. On the other hand, if Intel's volume (#of chips sold) dropped to AMD level, the unit costs would skyrocket. Joe

To: TimF who wrote (30733)	3/8/2001 7:32:30 PM
From: Bill Jackson	Respond to of 275872

Tim, Yes, the P-4 is costly and has higher costs than Athlons currently. I think the celeron is probably cheaper than the Duron to make since intel has had more time to tune the process. Still the celeron is worth less than a duron since it does less. The athlon is worth more than the P-4 because it does more, and yet sells for less(at least in the exposed market....who knows what dell pays). Right now the world is getting sick of the P-4 at a rapid rate. People buy them and find there is no glorious jump in speed and are hard put to defend their purchase. The word is spreading....P-4=Turkey. Bill Bill