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

To: AK2004 who wrote (51801)	8/21/2001 7:48:23 AM
From: Road Walker	Read Replies (3) \| Respond to of 275872

Albert, I'm just trying to look for a way out of AMD's current dead end situation. One assumption you are making is that AMD would lose 50% of their business if they raised their relative prices. Another is that AMD couldn't lower their fixed costs. (Even though they are called fixed costs, they can be lowered if you accept a slower growth business). A third is that Intel wouldn't charge more for it's products if AMD abandoned it's 25% discount policy. That could raise ASP's & GM's for both companies. re: That is if intel's asp is $200 then amd's should be $900 and all will be well. <gggg> The exaggerated result demonstrates the error in your calculation. Non-profit companies will get creamed in this environment. AMD needs to make money on a sustained basis, getting valued on potential doesn't work anymore. John