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

To: tejek who wrote (48717)	7/23/2001 12:34:49 PM
From: kash johal	Read Replies (3) \| Respond to of 275872

ted, re:"Maybe that's the only end as you propose it...a reduction to 10-15%..... but I don't understand why the reduction has to be so big. I was thinking more in terms of a couple of percentage pts.....somewhere between 17% and 22%." I dont see how they do that. Lets say they raise price $10/chip. They will lose customers. Lose marketshare. And have a couple of fabs at fixed costs still running. Lossess would be HUGE. Stock price would be sub $10 anyway. They can ONLY raise prices by INCREASING Mhz. And if you looked carefully at LAST years profits they were largely driven by flash NOT CPU's. And the flash market will suck for at least another year(at best). regards, Kash