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

To: Monica Detwiler who wrote (78738)	4/29/2002 8:47:23 AM
From: Dan3	Respond to of 275872

Re: And AMD is going to sell Thoroughbreds for 50% more than Athlon XPs Not of the same speed. You forget, Palomino was introduced at speeds barely faster than Thunderbird - but then quickly scaled higher. But I don't expect ASPs to rise this time, just to not fall much. But Palomino was actually a little larger than Thunderbird. Thoroughbred is a much smaller chip that will let AMD dramatically incrase unit sales without increasing costs. AMD is experiencing something of a price unbrella these days. Buyers aren't seeing much of a difference between 1800 and 2200, and won't pay the big delta they once paid. The days of big profits and big units as a 100mhz chip sells for 5 times a the price of a 75mhz are gone. If Intel cuts it pricing on their 1800 and 2000 P4s enough to cut off AMD desktop sales, they have to cut their prices on 2200 and 2400 P4s as well. Otherwise their high end units will collapse. And Intel can no longer make up for it in either the mobile segment or the server segment. AMD is everywhere now, and Intel has to maintain ASPs high enough to cover its $22,000,000,000 in annual costs.