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

To: wanna_bmw who wrote (83097)	6/20/2002 6:32:59 PM
From: Joe NYC	Read Replies (3) \| Respond to of 275872

wbmw, read between the lines. You know what I meant, please don't try and play dumb. Not based on the way you said it. The costs are relatively flat when you are running way under capacity, so the goal is to maximize revenues. What Charles suggested (more unit / lower price or fewer unit at higher price) is one way to do it. The problems with this is that the market is not entirely flexible, and there are lead times etc. Another problem is that AMD royally screwed up by designing Thoroughbred with 256k L2 rather than 512K, which means it is not a very desirable product, so there not much room to move prices, and relatively low response in demand as a reaction to lower prices. Joe