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

To: niceguy767 who wrote (138188)	10/29/2004 7:35:54 PM
From: rsi_boy	Read Replies (3) \| Respond to of 275872

"Intel had $2,373M operating income and microprocessor sales were $5,928M last quarter. So if their ASP dropped by 40%, they would be losing money. (100*2373/5928=40) That's an ASP of about $90, maybe $95. you're forgetting demand elasticity. if intel dropped prices 40% they might sell a lot more units. this would change the math. they could be almost as profitable, just with a different price/volume. depends on the marginal cost. which is the number we don't know.