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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (148004)	7/9/2002 1:49:10 AM
From: Petz	Read Replies (1) \| Respond to of 1577339

re:<How is this view different from simply saying there was a surplus of chips?> To compete with DELL the OEMs have to permanently reduce their inventory levels of chips, components and completed PCs. Inventory levels are commonly measured in terms of "X weeks of supply." If the number of weeks of inventory is reduced (both preproduction parts and completed PCs), then purchases for the "back-to-school build" may move from late June to early July. Back-to-school usually causes the June quarter to be back end loaded. Clearly, that didn't happen this year. So my point is that I don't believe the back to school season this year will be particularly poor compared to Q1 and Q2, but that the CPU purchases for it will occur in Q3 rather than Q2. Note -- another delaying factor may be OEMs who want TBreds rather than Palominos. If AMD can't deliver by the end of this month, then the delayed back-to-school sales won't show up in AMD's Q3, but in Intel's Q3. Petz