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

To: pgerassi who wrote (138145)	10/29/2004 4:09:20 PM
From: Elmer Phud	Read Replies (1) \| Respond to of 275872

Dear Pete Intel's marginal cost may be $20-40 per CPU Please substantiate this statement.

To: pgerassi who wrote (138145)	10/29/2004 8:06:43 PM
From: TimF	Respond to of 275872

Now lets go on to your $50 Intel ASP to sell 40 million each Q. AMD gets $75 and barely eeks out a profit. I agree with you interpretation of what $50 ASPs would do to Intel (if they don't increase their unit numbers a lot) but I don't think AMD would still be profitable in this situation. There would be a lot of pressure on AMD's ASP and I don't think they could maintain $75 unless they got out of the low end of the market and then their units sold would go down. Tim