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

To: Bill Jackson who wrote (37155)	4/24/2001 3:24:12 AM
From: brushwud	Read Replies (1) \| Respond to of 275872

That drop to .64 was just the JIT systems reacting. just as quickly they will order more parts when they see they need them. The book-to-bill ratio he quoted was for semiconductor equipment, not parts.

To: Bill Jackson who wrote (37155)	4/24/2001 9:53:24 AM
From: Rob S.	Read Replies (1) \| Respond to of 275872

Consumer PC sales is not nearly as important to the overall electronics industry as you suggest. Consumer PC sales may help particular chip companies, such as AMD, but consumer sales are less than 30% of overall uP sales and PC and related sales is now less than 50% of overall electronics industry sales. Communications industries have become the driving industry in the chip and general electronics sectors. I don't see the problem of the Ciscos winding up as quickly as you think. The problem is not only when the inventory is burned off but what the climate has become for pricing. What fueled the high growth (spectacular growth more like it) in chip companies and other component mfgs. was the fact that they could charge unusually high prices and were able to sustain unusually high margins. I think that even after the bottom in demand has been reached the expectations for profits will need to come down.