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

To: Joe NYC who wrote (68297)	1/19/2002 2:30:09 AM
From: Tenchusatsu	Read Replies (1) \| Respond to of 275872

Joe, <But I have a feeling that AMD is selling to this market directly.> Of course they are. Meanwhile, Intel has traditionally favored the high-volume Tier 1 OEMs over the PriceWatch grey market, which is natural for a company that has 80% marketshare (give or take a few points). That's why it doesn't make sense to use PriceWatch as an indicator of overall production volumes, because it totally ignores the high-volume OEMs like Dell or Compaq. Tenchusatsu

To: Joe NYC who wrote (68297)	1/19/2002 2:33:47 AM
From: Ali Chen	Read Replies (1) \| Respond to of 275872

"Majority of AMD chips on PriceWatch seems to be sold as OEM, which normally is considered gray market, sold by some large OEM." Excuse me, this is nonsense. "OEM" simply means that the processor is not wrapped in a box with heatsink and fan, that's it. The "boxed" market was introduced by Intel sometime in 1997, to ensure proper cooling solution of newer power-hungry CPUs to ignorant en-masse DIY individuals. Before then every processor was "OEM" (in modern terminology). There are plenty of high-volume distributors who buy processors in trays, and re-sell them to smaller distributors, who in turn re-sell them in quantity 1-2-5. There are plenty of shops who cannot afford to buy CPUs in standard 1000's quantities. There are plenty of high-school kids who assemble cheap boxes for their friends and relatives. "The volume of boxed chips, which should be the only legitimate chips available in the channel.." Why? There are many channels. It is called "free market" and "capitalizm" sometimes... - Ali