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

To: andreas_wonisch who wrote (57013)	10/3/2001 11:50:39 AM
From: Road Walker	Read Replies (3) \| Respond to of 275872

Andreas, re: They just buy a PC from a brand they recognize (Compaq, HP, Dell etc.) and at a price point they think is reasonable. I don't think that for many customers clock-speed is a big buying decision. I think you are wrong. If the big computer manufacturers had any brand equity, they wouldn't be working at such low margins. If Intel didn't have brand equity, their prices would be the same as AMD's. And if MHz didn't mean anything to the consumer, then they wouldn't be paying higher prices for higher MHz. re: The answer is simple: Because not the customers differentiate between clock-speeds, the OEMs do. The OEM's sell MHz upgrades just as much as Intel and AMD sell MHz upgrades. It's the business model the industry has grown up on. AMD is trying to disassemble that business model. For the sake of argument, let's say they succeed (which I don't believe they will). If so, there better be a clear, believable specification to drive consumer (and corporate) upgrades, or they won't happen. So far you have model hurtz, which appears to be 100% discretionary on the part of the manufacturers. Assuming you were buying a product you knew very little about, what would you prefer, an industry standard specification, or a manufacturer's discretionary rating? John