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

To: that_crazy_doug who wrote (47642)	7/16/2001 12:14:13 PM
From: 5dave22	Read Replies (2) \| Respond to of 275872

<I think we just disagree with what the problem is. You think the problem is AMD can't command high enough ASP's because of their marketing. I think they can't command high ASP's because the overall supply of CPU's greatly outstrips demand, and the cheaper cpus are almost indistinguishable from the more expensive ones in performance on everyday applications.> Doug, perhaps it's a combination? With regards to marketing, remember that AMD has a better product than INTC (clock for clock) with Athlon/Pentium & Duron/Celeron. Athlon and Duron are cheaper than Pentium and Celeron. People are still buying many more Pentiums and Celerons than Athlons and Durons. This has nothing to do with the current CPU problem. This is textbook marketing failure, besides that, it's common sense. Really, it's just a missed opportunity - and Jerry - and many others here all-out incorrect on blaming it on the current semi situation. Dave

To: that_crazy_doug who wrote (47642)	7/16/2001 12:58:21 PM
From: Ali Chen	Read Replies (1) \| Respond to of 275872

Doug, "You think the problem is AMD can't command high enough ASP's because of their marketing. I think they can't command high ASP's because the overall supply of CPU's greatly outstrips demand" And I think you both are wrong. The problem of AMD is in poor platform/chipset engineering. All other market problems are consequential. AMD cannot command high ASP because their algorithm is: a) first delivered platform is usually too "fragile"; b) usually the so-called "performance bugs" are of last priority to fix, resulting in diminished system performance; c) as result, the system performance is not compelling enough for OEM to make a decision of high-volume build; d) when performance bugs are fixed, it is too late; systems must be sold at discount, with heavy implications on processor's ASP; e) AMD promises to OEM a new improved platform; f) GO_TO a); - Ali P.S. Corrections to the above algorithm are welcome <g>.