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

To: THE WATSONYOUTH who wrote (47035)	7/10/2001 11:13:06 PM
From: kash johal	Respond to of 275872

Watson, I think you are being paranoic here. Computer companies are trying to reduce channell inventory - just listen to CPQ conf call today. If they retailers sell out their Athlons etc and PIII's are still in inventory the suppliers will most likely devote more space to PIII's. They wont rush to refill Athlon pipe until overall inventory is reduced IMHO. This may also plausibly explain AMD's weak Q2 as well. They sold chips like gangbuster in April, May. When June came the big guys still have ton of inventory - guess what the did in their self interest? regards, Kash

To: THE WATSONYOUTH who wrote (47035)	7/11/2001 7:34:30 AM
From: Road Walker	Read Replies (2) \| Respond to of 275872

TWY, re: "It's a cash incentive to NOT display AMD systems." Now you are really getting paranoid. In the real (non-AMD fantasy) world, a deal like that would have to be approved by the top executives at CC. And it would have to make very clear long term economic sense. Can you imagine CC executives saying "OK, AMD represents about 50% of our consumer demand. But we are getting a payoff from Intel and the OEM's. So we will limit our boxes to Intel, and our customers will be dissatisfied and go to other retailers, and we will lose sales and gross margin dollars. And we might not get those customers back. Sounds like a great deal." It's just not the way it works. CC want's to keep it's customers by offering the products they want. Every inch of retail space represents a huge cost in employee salaries, land costs, electricity, insurance, corporate overhead, on and on. Every inch has to produce revenue and turns and profit. It's their business, and they run it like a business. re: As I said, I think this is between Intel and the OEMs... not CC. The decision makers are professsional buyers who know the industry as well as anyone on these threads. They rake the OEM's over the coals for the best deals, and then they make the final decisions on product mix. In the end, the only thing they care about is that the units provide profitable turns. But, even assuming the OEM's had complete control over what was displayed at CC, why would they put in (as you presume)slower selling Intel units rather than faster selling AMD units? Where is the economic benefit? John