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

To: Charles Gryba who wrote (60613)	10/27/2001 11:16:57 AM
From: dale_laroy	Read Replies (1) \| Respond to of 275872

>Who would pay $500+ for a 2Ghz P4 when the press has spoken and said that the XP1800+ is about as fast and it costs $300 less?< Unfortunately, more people would pay for the 2 GHz P4. Many people assume a higher price translates to higher quality.

To: Charles Gryba who wrote (60613)	10/27/2001 11:47:46 AM
From: Dan3	Read Replies (3) \| Respond to of 275872

Re: TBird prices are rising and XP prices are holding. I think the XP Quantispeed thing is working. You're right, it's really a stunning change. I think quantispeed is helping. But there may be more to it than that. Intel's forced transition of the market to P4 appears to continue to have problems. Intel has been successful in flooding the market with P4 systems available for sale, and they have put together an unusually good advertising program, but the question of how sell-through is running remains open. It's hard to believe that the market has suddenly come to understand the issues of P4 with SDRAM and the difference between socket 423 and 478, but something appears to be keeping customers suspicious of the available P4s. The recent changes in Pricewatch prices are stunning. The Duron 1.1GHZ from Austin is now selling for about the same price as the 1.4GHZ Dresden Athlon was a few weeks ago. The pricing of Dresden produced parts is up by 50% to 100%, while the ASP of Intel's fastest P4s continues to gradually move lower on pricewatch. The tiny fraction of buyers who understand the differences between Intel and AMD processors were already buying AMD. The vast majority of buyers were simply paying more for the one with the larger number when AMD adjusted the number used to label their processor. It still understates the performance advantage of AMD processors over P4, but it gives the average consumer a fighting chance to make a better informed purchasing decision. Is AMD still selling all they can make for whatever the market will pay? Or have they backed off from the price war? If AMD continues to sell all parts produced, they are headed for a spectacular turnaround in Q4. If they've decided to raise prices regardless of what happens to market share, there may be no turnaround. How can we tell which is happening?