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To: wanna_bmw who wrote (145840)	10/22/2001 12:41:36 PM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Beamer - Re: "The belief originally was that if you stuff the market, it would come back to bite you the next quarter when inventories are filled, and buyers are simply uninterested in buying more processors at any cost. Why hasn't this happened yet to AMD, " It already HAS HAPPENED to AMD. Check their ASPs for Q1 2001, Q2 2001 and Q3 2001 They went from $95 (Q1) to $75 (Q2) to $60 (Q3) - a direct result of shoving TOO MUCH PRODUCT into the market place at too little a sales price. Paul

To: wanna_bmw who wrote (145840)	10/22/2001 12:47:42 PM
From: Elmer	Read Replies (1) \| Respond to of 186894

If this is true, then here's my question. What are the buyers of these low cost processors going to do with them if demand is simply not there? Additionally, what's to stop AMD from repeating this pattern over and over again? The belief originally was that if you stuff the market, it would come back to bite you the next quarter when inventories are filled, and buyers are simply uninterested in buying more processors at any cost. Why hasn't this happened yet to AMD, if it is true that they are dumping so many processors? If the price is low enough the customers have little risk. As you probably noticed, AMD's ASPs are dropping like a rock. Looks to me like it has come back to bite AMD. EP