Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Charles Gryba who wrote (74890)	3/18/2002 6:38:24 PM
From: hmaly	Respond to of 275872

Charles Re...hmaly, I don't know what you are talking about. Yes, price/performance is great and everything but for AMD to grow they need high ASPS. <<<<<<< What do you mean you don't know what I am talking about. You just repeated my mantra. Price performance is everything; or as Vince Lombardi used to say; "Price/performance isn't everything, its the only thing." Actually he didn't quite say that, but he could have if he was talking about business. And AMD doesn't need higher ASPs if AMD had higher volume. AMD would make as money/share with ASPs of 95$ as INtel does with ASPs of $150, if AMD would have Intel's volume. In fact, in 2000, AMD made far more money/share with ASPs of approx. $100, whereas Intel had ASPs of close to $200. In the last quarter, if AMD had ASPs of just another $5/share, AMD would have made another $40 mil, which would have given AMD a profit of 10 cents/share, matching Intels profit. And that was with flash in the dumps. The oems can trim other things to put a $150 cpu in their designs. That's what Dell is doing and they're winning. One can do that only so long, and the lack of overall quality will come back to haunt them. Secondly, AMD is eating up big chunks of gov. and small business. Its only a matter of time before big business follows. Why do you assume big businesses are too stupid to recognize cheap parts with an expensive cpu isn't necessarily a great deal. If they had an Athlon 2600+ right now I bet you that they could have raised the prices on the whole range of Athlons.<<<<< Partially true, but it isn't a truism. The better performance of the 2600 will indeed give AMD a better image, but so will better price performance; just not as quickly. Once again, if you look at the Japanese cars, none of them were especially noted for performance, except possibly the Datsun Z80; yet they prevailed on price/performance against tougher odds. Porsche has better performance than Toyota, but would you want to venture a guess who sells more cars, or makes more money. AMD will do just fine at $95 ASPs, 25% market share and improved flash prices; just wait and see.