Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: g_w_north who wrote (135771)	10/11/2004 2:05:09 PM
From: dougSF30	Respond to of 275872

The question is, is it really cheaper than $500M to attempt to unload it? That's the problem they face, with demand largely unresponsive to their pricing, according to Intel themselves. Doug

To: g_w_north who wrote (135771)	10/11/2004 2:13:59 PM
From: Petz	Read Replies (1) \| Respond to of 275872

Swallowing half that $500M in inventory saves money compared to selling 5M Prescotts as Celerons for $50. When they sell a Celeron 2.53 or 2.8, they lose the sale of a $150 3 GHz P4. Personally, I think Intel will take a writeoff this quarter. When a writeoff is taken, it also gives opportunity to bury other costs in the "one time" charge. Petz

To: g_w_north who wrote (135771)	10/11/2004 2:17:41 PM
From: Joe NYC	Read Replies (2) \| Respond to of 275872

gw, notebooks, notebooks, notebooks I would say servers first, but overall, I think it is ASPs, ASPs, ASPs. AMD is doing a great job with K8 ASPs, and the key is to win keep winning sockets where the > $100 price for CPU is acceptable. Then, as a bonus, maybe we can get above 8M unit shipments when 90nm is fully online. BTW, since I am in a negative mood today, let me say this: 90nm sucks so far. Both from the binning perspective and from wafer starts. These 2 can be related. Why start a whole bunch of wafers if the sweet-spot is 2.1 GHz, while 130nm sweet spot is 2.3 GHz? 90nm wafer start crossover by the end of the quarter means 90nm crossover for parts sold a quarter later, which is end of Q1. The bottom line is that the much disputed one quarter delay of 90nm has happened, and it is not at all clear if D0 stepping can catch up with CG stepping anytime soon, or at all, or if we will have to wait for E0 stepping, which may be well into Q2 2005 (WAG). Joe