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

To: milo_morai who wrote (88058)	9/13/2002 12:10:17 AM
From: Joe NYC	Read Replies (3) \| Respond to of 275872

Milo, The question is not whether you need a faster processor or not. Suppose I offer you I sell processors, and I offer you a Cyber GT 1.5 GHz for $100 and Cyber GT 2.0 GHz for $100 as well. Which one would you pick? Even if you only need 1.5 GHz, you will take 2.0 GHz because there is no premium to pay for getting a faster speed grade. Now suppose all the competitor can offer is a 1.5 GHz equivalent. This competitor will have hard time selling it since the other guy gives the extra 500 MHz for free. This is what stinks about AMD's situation. Intel will probably soon switch Celerons to NW 128 or 256, and AMD ends up competing with the Celeron line, needing to undercut it substantially, while Intel has the high end with no competition, collecting premium dollars. AMD has been there during the last days of K6 and it was not pretty. Right now, the Tbred "B"s better arrive quickly, along with nForce2, or AMD will be in a very difficult situation. This would be a good time for flash to pick up because CPUs are going to stink for a while, p/l wise. Joe