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

To: 5dave22 who wrote (35265)	4/9/2001 12:54:16 PM
From: Joe NYC	Read Replies (1) \| Respond to of 275872

Dave, Had AMD created any real demand for these products - the ASPs would certainly be higher than P4s. I have a feeling that the demand has been very strong, but lately, there has been some deterioration. If AMD priced the Athlons higher than P4, the sales would be proportionally the same as P4 sales. That is 2 million P4s were sold, only about 340,000 Athlons would have been sold (maintaining market share what it is now). But AMD needs to increase market share, otherwise there will be unused capacity. Regarding advertising, suppose AMD spend $70 million on advertising (wiping out almost all of the profit) Suppose it succeeded and ASPs increased by $10, basically paying for advertising, without spending all of the profit on it. The end result would be no effect on AMD, consumers $10 poorer, ad agency / media outlet $10 richer. I don't know if this is progress. Joe