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

To: Petz who wrote (76347)	4/3/2002 2:08:43 PM
From: andreas_wonisch	Read Replies (1) \| Respond to of 275872

Petz, Re: Growing market share via $50 processors is a good long-term strategy for the consumer and small business market. But who wants to buy low-end processors when you can get "high-end" processors for about the same price (e.g. $90 for a XP1600+ compared to $70 for a Duron 1300)? Why sell a undesirable low-end product that nobody wants to buy (read: Duron) when you can establish an image of quality and performance with your high-end solution (read: Athlon XP). AMD said that they "walked away" from some low-end deals in Asia last quarter. Why not go one step further and discontinue your low-end product line altogether? I guess there are still some Thunderbirds in inventory that could be sold instead, not to speak about low-binning Athlon XPs. AMD doesn't have to offer crappy, low-end parts just because Intel does. While units could suffer somewhat from that move ASPs and margins would certainly increase by that move. Too bad that for Jerry unit market share is the most important thing to measure his "success". I hope Hector is smarter. Andreas

To: Petz who wrote (76347)	4/3/2002 4:02:29 PM
From: Joe NYC	Read Replies (2) \| Respond to of 275872

Petz, Growing market share via $50 processors is a good long-term strategy for the consumer and small business market. It's called "repeat business." I don't believe it is a case at this time. I think a $75 dollar Palomino with QS ratings just below the discontinued products (at this time 1600 down to say 1200) would be easier to sell, more of them would be sold, and it would produce more repeat business. AMD could make them at Austin, very reasonably up to 1600+ (1.4 GHz), since they are making Morgans now up to 1.3 GHz. What is the cost of additional die space needed to get 196K L2? The die size increase in < 20mm^2, and the cost is less than 20% (the packaging shipping is already paid for), fab utilization is low. The entire difference may be the cost of 20% more blank wafers. BTW, what is a ballpark price of a wafer? Joe