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

To: herb will who wrote (66717)	12/31/2001 9:35:41 AM
From: combjelly	Read Replies (1) \| Respond to of 275872

"but I can’t see anything that would show that there is large scale dumping of P 4’s." Didn't mean to imply that I thought that to be the case. What I wanted to point out was that AMD gets a significant premium over the P4 at the same clock rate. As your table points out, AMD even gets a premium over Intel when you compare ModelHertz to frequency, something that if it was suggested in October would have been hooted down in derision, and rightly so. It is significant that the pricing has more or less stuck, which implies that the OEMs are paying equivalently high prices. The gray market is fed by OEMs dumping excess stock, and it would not surprise me if there was a big delta between the gray market price and the OEM price, that some would buy more than they need and sell it on the gray market for the quick profit. Since pricing has been stable either the delta doesn't exist, or the demand is so high that the units get soaked up immediately. It does not mean the dealers cannot sell them, these people don't hold anything for more than a few days to a week. The margins are low enough that they need to turn products quickly. As far as the difference between the PriceWatch pricing and AMD's and Intel's volume pricing, all it means is that AMD's sales people have more flexibility in setting the pricing. Not like that is news...