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

To: Monica Detwiler who wrote (66215)	12/24/2001 8:55:48 PM
From: niceguy767	Read Replies (1) \| Respond to of 275872

Monica: "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." Yields can't be too bad if AMD is shipping record units...Using similar logic though, INTC's yields must really be awful inasmuch as they are nowhere near record shipments... Realistically, though, INTC has until recently enjoyed margins of 65% which have recently declined to 48% in effort to maintain marketshare...That AMD is shipping record units while INTC's margins have dropped close to 20 points should twig a degree of concern for all INTC shareholders...Think about it, Monica, INTC has reduced margins by from about 65% to 48% to stem marketshare erosion and yet AMD is still shipping record numbers of units...No doubt AMD's margins have suffered as well in the face of INTC's panic attack, but no sane analysis can conclude that INTC's tactics over the past 2 years have strengthened INTC's position relative to that of AMD...On the contrary, one might argue that as a result of AMD's increasing marketshare and immeasurably improved product competitiveness (i.e K6 vs. P3 of 2 years ago vs. Athy XP vs. P4 currently) that AMD's relative position is significantly strengthened... P.S. Speaking of yield problems, I'd be highly concerned as an INTC shareholder about the shortage of top end p4's...

To: Monica Detwiler who wrote (66215)	12/25/2001 7:46:36 AM
From: fyodor_	Read Replies (2) \| Respond to of 275872

Monica: I believe AMD's very low yields have been documented and account for AMD's recent losses. Then you believe incorrectly. AMD's low ASPs have been documented, as well as their inability to sell all their product from Fab25, even at fire-sale prices. -fyo

To: Monica Detwiler who wrote (66215)	12/27/2001 9:41:22 PM
From: tejek	Read Replies (1) \| 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, AMD doesn't have production problems...that's INTC. With AMD, its the low ASPs resulting from its competition with INTC....although that's changing this quarter due to INTC's well documented, ongoing problems with getting product out the door....kinda like a corporate XMAS gift from Barrett to Sanders. Now that's a match made in hell. BTW don't you think its time for Barrett to go? ted