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

To: AK2004 who wrote (118092)	4/1/2004 1:35:05 PM
From: DRBES	Read Replies (3) \| Respond to of 275872

<font color=darkgreen>New Pavilions show increasing HP support for AMD chips Out of nine new a500 series Pavilions, seven use AMD's processors <font color=black> By Tom Krazit, IDG News Service April 01, 2004 Hewlett-Packard Co. (HP) has quietly begun selling a new series of Pavilion PCs, revealing a growing interest in using Advanced Micro Devices Inc.'s (AMD's) processors in its desktop systems. Of the nine new a500 series Pavilions, seven use AMD's processors. Limited details about the HP Pavilion a550e, a550y, a530e, a510e, and a500y PCs were available on HPshopping.com Wednesday afternoon, and by Thursday, the full specifications were available on HP's site. An HP spokeswoman confirmed the PCs are currently available. On HPshopping.com, the a550e and a530e will come with AMD's Athlon 64 processor, while the a510e uses its Athlon XP chip. The other new Pavilion 500 series systems available on HPshopping.com use Intel Corp.'s Pentium 4 and Celeron processors. Four additional a500 series PCs with AMD processors are available through Fry's Electronics Inc.'s Outpost.com Web page, said Toni Duboise, an industry analyst with ARS Inc. in La Jolla, California. HP has been the largest PC vendor to support AMD's chips on the desktop, with Dell Inc. declining thus far to do so. The new PCs, along with the release of four HP a500n series PCs with AMD processors, suggest that HP is shifting to the AMD product line for its Pavilion desktop PCs, Duboise said. "While it is true that HP has been a long time proponent of AMD, the fact that four out of the first (retail) 500 series models sports an Athlon CPU is big news. Intel is surely not pleased about the exclusion of the Celeron CPUs within HP's mainstream value segment, but ARS feels this move is directly connected to the recent increased success of AMD-powered desktop machines sold within the retail marketplace," Duboise wrote in a recent research note. Gateway Inc.'s eMachines division did very well in retail stores with Athlon 64 and Athlon XP PCs earlier this quarter, and HP did not want to concede that market, Duboise said. Last quarter, eMachines released an AMD desktop with a multifunction DVD drive for less than $800 that drew much interest from retail consumers, Duboise said. HP's new a500n systems aren't always cheaper than their eMachines rivals, but they are close enough in price to take back some of that business, she said. HP's new product launches as well as the success of the AMD-based eMachines PCs show that "it appears as if HP is intent on increasing its share of that AMD pie," Duboise wrote in her research note. However, HP's support for Intel's desktop processors on HPshopping.com remains strong, with Celerons and Pentium 4s included with the majority of the PCs sold under the Compaq Presario brand on HP's Web site. And the vast majority of HP's notebooks, the fastest growing segment of the PC market, are solidly within the Intel camp. ARS expects HP to roll out Celeron and Pentium 4 desktops for the retail market soon, as opposed to just selling them directly at its online store. HP won't want to ignore its historical ties with Intel as well as that company's higher brand recognition among retail customers, Duboise said. Since July of 2003, Intel PCs have made up about two-thirds of the retail market for preconfigured Pavilion PCs, while AMD has captured about one-third of that market, according to data from NPD Techworld in Reston, Virginia. Data for build-to-order PCs sold through HPshopping.com was not available. The numbers tend to fluctuate at certain periods, such as the fourth quarter holiday selling season, said Stephen Baker, director of industry analysis at NPD Techworld. "(HP) is pretty willing to use what they think they have to use to remain competitive," he said. infoworld.com

To: AK2004 who wrote (118092)	4/1/2004 1:42:41 PM
From: Elmer Phud	Read Replies (1) \| Respond to of 275872

aLbErT - it's nice to hear that you're finally bullish on amd and bearish on intel :-)) Let us take off our partisan hats and be investors for a moment. I'm afraid you've gotten the wrong impression. I am expecting AMD to remain in it's historical range, which is right around here. I write Strangles on almost a monthly basis, in fact I wrote some May $15 Puts today for $0.45. While AMD may move up and down I expect it to return to these levels. I've been right so far. In my view, AMD continues to have serious manufacturing problems and I see no signs of a turn around. Intel on the other hand may trade in it's range as well, so I am playing much the same strategy. Strangles. I will make money on AMD if it goes up, if it stays flat or if it goes down slowly. Same can be said for Intel.