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

To: Charles Gryba who wrote (82929)	6/19/2002 1:59:03 PM
From: Gopher Broke	Read Replies (1) \| Respond to of 275872

I think that $15 is such a small fraction of the overall system price that it would not trigger mass adoption by the OEMs and 4 million additional sales for AMD. That is part of the problem - as the ASP plummets so does any influence AMD could get from discounting.

To: Charles Gryba who wrote (82929)	6/19/2002 2:07:16 PM
From: wanna_bmw	Read Replies (3) \| Respond to of 275872

Constantine, Re: "let's say they sell 6 million at an ASP of $65-70 = $390-420Million. On the other hand 10 million cpus @ $50 = 500 million." Great. So AMD sells 67% more CPUs with 67% more operating costs, but they are able to make 25% greater revenues. Sounds like "greater losses" to me. wbmw

To: Charles Gryba who wrote (82929)	6/19/2002 2:19:47 PM
From: niceguy767	Respond to of 275872

Charles: ". I am sure they can manufacture 10+million cpus per quarter but let's say they sell 6 million at an ASP of $65-70 = $390-420Million. On the other hand 10 million cpus @ $50 = 500 million. So their revenue will go up and at the same time they might be able to get Intel to back off the pressure a bit. What do you think?" Interesting scenario: Assuming demand is 125 million cpu's per annum and assuming AMD sells 40 million, that leaves 85 (21 million per quarter) million for INTC...INTC would need an ASP well over $200 to break even while AMD would require an ASP of $70...Such a scenario might well be relevant in a highly successful ClawHammer world...