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

To: eracer who wrote (148447)	1/20/2005 11:44:41 AM
From: TechieGuy-alt	Read Replies (1) \| Respond to of 275872

What on Earth is "fair pricing"? No such thing. Most folks think pricing for a product is set by the manufacturer based on cost. Big mistake. The market sets pricing for any product. "Fair pricing" or in other words, "market based pricing" is what causes customer demand to generate revenues that maximize return on investment that went into creating the product. It can be a bazzillion $'s or it could be given away for free. If the pricing on the Intel chips is correct, then it's obvious that the strategy is to segment the dual core into its own segment, make the offering unattractive or otherwise incompatible for ready replacement for their regular "Xenon's" line and then pressure AMD into responding with similar low pricing- thus devaluing the AMD product. It's a trick and I hope that AMD completely ignores this Intel pricing and educates the customer(s) to the value of their dual core offering and charges a high price for it that customer readily pay! TG

To: eracer who wrote (148447)	1/20/2005 12:39:11 PM
From: AK2004	Read Replies (1) \| Respond to of 275872

re:Were AMD's Athlon and Athlon XP designs defective just because pricing was significantly lower than Intel's that might have been a valid point if we would compare AMD and Intel. But we are comparing Intel single core prices vs Intel dual core re: A 3.4GHz 1MB L2 Prescott with hyperthreading is still going to sell for less than a 3.0GHz Smithfield. A 3.8GHz P4 is going to be introduced for 60% more than 3.2 GHz Smithfield. 3.73GHz EE would be inroduced for 89% more It does not look like that the margin on Smithfields in line with the rest of Intel's CPU products -AK