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

To: Harvey Allen who wrote (66207)	12/24/2001 8:10:24 PM
From: Monica Detwiler	Read Replies (3) \| Respond to of 275872

Harvey - You asked How does Intel get 48% margins while AMD loses money? I believe AMD's very low yields have been documented and account for AMD's recent losses. Monica

To: Harvey Allen who wrote (66207)	12/24/2001 11:37:22 PM
From: Dan3	Respond to of 275872

Re: How does Intel get 48% margins while AMD loses money? Merry Christmas, Harvey. Now, go look up "gross margin" and then look up "net margin." It should be a real eye opener for you!

To: Harvey Allen who wrote (66207)	12/24/2001 11:39:37 PM
From: Jim McMannis	Respond to of 275872

RE:"How does Intel get 48% margins while AMD loses money?" Apples and oranges. You have to know costs. That said. Intel still has a lot more Mhz sells cream off the crop and server chips they can make large margins with. This Q however I suspect AMD has made up some on the notebook chips and Intel may suffer a little from X-box chip low margins. AMD has a long way to go in the server and SMP arena but they do have product except in the large cache area. Intel is likely the overall low cost producer as well, despite the large Willy die size. With Northwood, Intel may even get margins higher next year. JIm

To: Harvey Allen who wrote (66207)	12/25/2001 12:47:52 AM
From: Elmer	Read Replies (2) \| Respond to of 275872

How does Intel get 48% margins while AMD loses money? I don't normally post here on the thought control forum but this is an important issue. Harvey, an analysis of AMD's fab capacity and output leads many industry experts to conclude that AMD suffers from very poor fab yields. I have posted an indepth analysis over on the Intel thread as has Paul Engle. Various attempts have been made to provide alternative explanations for the low fab output but they are contrived and stretch credibility. AMD's yields stink and it's pretty obvious to those who know semiconductor manufacturing. Why they are bad is another story that makes for a good discussion but it's quite technical and becomes more speculative. That AMD's fabs are putting out a remarkably low number of Athlons is not debatable, why is another issue. EP