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To: Windsock who wrote (156757)	1/24/2002 2:51:19 PM
From: TimF	Read Replies (2) \| Respond to of 186894

AMD sells Athwipes using the "sell it at a loss and make it up on volume" principle. No they don't. Each sale makes an incremental profit. If they had more volume they would make a profit. "Sell at a loss and make up for it on volume" is impossible because it would refer to selling below variable costs which to my knowledge AMD has never done on any product that they produced in significant volume. Also AMD made a small profit for the year and was cash flow positive for the year so it can be argued that even including overhead they did not sell at a loss. Tim