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

To: Bill Jackson who wrote (57394)	10/5/2001 9:57:30 PM
From: reynoso	Respond to of 275872

Athlon XP rollout is building momentum - Dealers: Price hints for new AMD chip By Michael Kanellos Staff Writer, CNET News.com October 5, 2001, 5:05 p.m. PT Dealers and computer makers have begun to list prices on Advanced Micro Devices' upcoming Athlon XP processor, which officially goes on sale next week. The Athlon XP 1800+, which sources say will be released Tuesday, is currently being advertised by resellers for $254 and $255 on Price Watch, a shopping site dedicated to computers. Atacom, a California-based reseller, won't ship the part until after the chip comes out, company representatives said. Advertisements are also popping up for an Athlon XP 1500+ computer from Fujitsu-Siemens for 1,022 euros, or $939. Athlon XP is the latest version of AMD's flagship processor. The upcoming chips feature improvements that allow the processor to run on less power and thus produce less heat. Additionally, AMD will try to popularize a new naming convention that does not feature megahertz, the typical way of designating a chip's speed. The Athlon XP 1800, for example, will run at 1.5GHz. The new naming convention is justified by AMD under the principle that the 1.5GHz Athlon stacks up with a 1.8GHz Pentium 4 in terms of performance on typical computing tasks. The "XP" part is also new. The posted prices closely match the price of the 1.8GHz Pentium 4, which sells for around $256. An AMD representative declined to comment on unannounced products, but the company has said that the XP chips come out next week. Processor prices have declined this year more than normal due to sluggish sales and intense competition between Intel and AMD. AMD said Friday that it will report a pro-forma loss of approximately $90 million to $110 million due to price pressures. Chips from the Sunnyvale, Calif.-based chipmaker often sell at discounts from the "official" wholesale prices because of the way AMD sells its chips. Distributors and major PC makers often get substantial discounts from AMD on orders of over 1,000 chips. These chips then eventually find their way to the "gray" market of unauthorized dealers. Partly because of internal antitrust policies, Intel offers much more modest discounts on its processors. Consequently, gray market prices for Intel chips generally remain slightly above the wholesale price. Staff writer Kai Schmerer contributed to this article from Germany.

To: Bill Jackson who wrote (57394)	10/6/2001 1:28:57 AM
From: wanna_bmw	Read Replies (1) \| Respond to of 275872

Bill, Re: "How do we know market research accurately gets the CPUs sold to SD shops, both Intel and AMD. Seems to me Intels silence adds skew to all the numbers. Intel could be selling more and getting less money for them?" Could be. But how much do you think AMD is selling their chips for, for them to incur a 22% loss in revenue over the past quarter? Last quarter, their ASPs were estimated at $75, and margins at 35%. What do you suppose they are now? I don't care what they say: AMD's loss this quarter isn't 100% because of flash memory. wanna_bmw