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

To: wanna_bmw who wrote (57404)	10/6/2001 12:30:04 PM
From: dale_laroy	Read Replies (1) \| Respond to of 275872

>How, then, do you figure that Northwood will sell for less than Willamette. It will come in faster clock speeds, and have higher performance. I would think that this deserves a premium over any Willamette chip.< I specified the current ASP of Willamette, not the ASP of Willamette at the point of volume crossover. Intel is targeting more than doubling P4 volumes by the time Northwood reaches 50% of P4 market share. This should be obvious because Northwood will be adding to Willamette production, not replacing it. Furthermore, by the time Northwood reaches the 50% point, Willamette yields should have increased by more than demand does, even assuming AMD does not increase market share. This means that, at this milestone Northwood will account for a higher percentage of Intel's processor sales than Willamette does currently. This, in turn, implies that Northwood will have to penetrate lower into the market than Willamette does currently. To penetrate lower into the market, the lowest speed grade Northwood will have to sell for less than the lowest speed grade Willamette does currently. This will drag down the ASP of Northwood relative to the current ASP of Willamette.