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

To: AK2004 who wrote (51869)	8/21/2001 12:47:10 PM
From: Road Walker	Read Replies (3) \| Respond to of 275872

Albert, re: and as an expert you would tell me that gm goes up as asp goes up without regard for unit sales GM percentage goes up. Absolute GM dollars go up if the higher ASP make the company profitable, obvious. You and I both know it's a trade off, trying to reach a balance between prices and sales. Every good company goes through the process regularly, "if we raise prices 5%, we will lose X% of business, but our net will go up 1% (or down 1%). Do we do it?". AMD, on the other hand, seems to have settled on a policy that's more about hurting Intel than helping AMD (or it's stockholders). Flat 25% off Intel. Even when the market was capacity constrained, in total disregard of profit potential, or longer term pricing power. Albert, why not go to 30%, 40% or 50% off Intel's prices, if thats such a great strategy. And you still didn't answer, do you think Intel would be less aggressive with it's prices if AMD was closer to parity? John