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

To: semiconeng who wrote (68321)	1/19/2002 12:59:50 PM
From: fyodor_	Respond to of 275872

Semi: I often find it interesting to read on this thread, that the number of "Pages On Pricewatch" is a good thing for AMD..... But a bad thing for intel. Interesting......no? Sadly, that kind of thing happens all to often on this thread (and others). People have an amazing ability to interpret the data to fit their expectations / wishes. -fyo

To: semiconeng who wrote (68321)	1/19/2002 1:29:12 PM
From: Dan3	Read Replies (1) \| Respond to of 275872

Re: unlike the CuMine launch, intel is able to supply all the chips necessary for OEM, AND the Pricewatch crowd too. It may also be a sign that buyers are no longer interested in paying 3x the price for a 10% faster chip - bad news for both AMD and Intel. I think that the partnership with Dell is hurting Intel. When Compaq, IBM, and HP were selling most of the boxes to business, they limited configurations. If you wanted a high end video card, a big hard drive, and a lot of memory, you had to pony up for an expensive CPU, whether you wanted to make that particular investment or not. Now that Dell's "have it your way" approach is dominating business purchases (and Compaq etc. is starting to offer the same choices) more IT managers are finding it easy to cut their total acquisition costs by going with a CPU a notch or two below the top end, while keeping everything else the same - but that 15% system price drop represents a huge drop in the profits Intel makes on the CPU. A 1.8GHZ and 2.2GHZ chip both cost Intel about $140 to make (after figuring in overhead costs). But the 1.8 sells for $200, while the 2.2 sells for $550. The Dell system gives Intel a profit of $60, while the IBM/Compaq system gave them over $400.