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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (156808)	1/25/2002 12:16:23 AM
From: Joe NYC	Read Replies (1) \| Respond to of 186894

Elmer, It has been suggested here that AMD held back capacity (despite their claims of being at 100% capacity) to keep ASPs up, in which case additional wafers would have harmed ASPs to the extent that total revenue would have suffered. That's a separate issue, and a valid point to some extend. AMD's main problem is inability to sell more chips. So the question is how would AMD sell additional wafer worth of output, not how to produce it. At constant prices at current level, there is no question that more AMD makes/sells, the more they make (lose less). Intel renewed competitiveness makes it so much harder for AMD to sell more. I think the second part of the answer to your question is flash, where sell more, make more, sell less lose more applies as well. AMD's flash sales went from $458M in Q4 2000 to $196M in Q4 2001, or down 57%. The $250M of lost revenue is the reason AMD is in the red. Joe