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

To: Petz who wrote (50426)	8/8/2001 7:24:42 PM
From: Road Walker	Respond to of 275872

John, re: So they would have to drop the price less, perhaps selling at an average price of $70 intead of $60. I think they have to raise their price relative to Intel, not just on an absolute basis. That's a long term strategy, this quarter is just this quarter. John

To: Petz who wrote (50426)	8/8/2001 11:49:09 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 275872

Petz, <AMD spends some money wisely on marketing, they'll only have 2.5 million CPU's to sell, instead of 3.5 million, because sales rates were higher during the quarter. So they would have to drop the price less, perhaps selling at an average price of $70 intead of $60.> That would be an intelligent strategy in my opinion. But this strategy goes counter to the majority opinion on this thread that AMD must gain unit market share at any cost. The value of advertising isn't short-term, because like John (Fowler) said, AMD can't accompany ads with immediate price increases. Instead, the value is more long-term, as AMD tries to slow their rate of price cuts relative to Intel's. Tenchusatsu