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

To: Milan Shah who wrote (47411)	7/13/2001 1:31:27 AM
From: SteveC	Respond to of 275872

I disagree about with your use of channel stuffing. Channel stuffing is a form of accounting fraud. If a company dumps its product onto the market and counts the shipments as sales, but the wholesalers/distributers have the right of return or don't have to pay for the product until they actually sell it to an end user, then you have channel stuffing. This often arises in the context of software sales, but it can occur with hardware companies (remember MediaVision?). AMD just sold a hell of a lot of its product at the end of the quarter. That's not channel stuffing; these were legitimate sales that AMD was paid for, albeit at bargain basement prices. AMD is simply fighting back & seeking to maintain its market share during a sharp downturn in the market & a price war (Intel's significant drop in PIV prices a few months ago was the opening attack). AMD's strategy was the appropriate response. When the consumer market picks up, AMD will be well positioned for significant gains. The corporate market is dead for 2001, and with Intel killing the PIII on the desktop they risk significant losses to AMD in 2002.