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

To: Biomaven who wrote (184413)	1/19/2006 5:41:59 PM
From: Jim McMannis	Respond to of 275872

RE:"I'm still puzzled by the huge ASP disparity between Intel and AMD" So are many of Intels customers but they are slowly getting it.

To: Biomaven who wrote (184413)	1/19/2006 6:40:42 PM
From: AK2004	Respond to of 275872

Peter intel's strategy was more about market segmentation and that strategy still works well for intel. AMD expanded from consumer desktop to consumer laptops and penetrated server market a bit. AMD reduced flash exposure as well. Corporate market is still dominated by Intel though and that is the lion share of intel's revenue. -AK

To: Biomaven who wrote (184413)	1/20/2006 12:48:26 AM
From: rzborusa	Respond to of 275872

Peter, economaniac Let's assume you are correct and the Intel low-marginal cost incentive program has indeed broken down. (And it's certainly possible that the lawsuit had a big influence on this). What do you see that doing for Intel's and AMD's next quarters? What does Intel's new pricing model look like? Fab 30 and 36 together should reach 40% of the market capacity (currently, even at 90nm). That will leave the market excluding Dell at 50:50. I see some of the issues of Fair Trade tantamount to civil rights violations, particularly the Back Ended Discounts. It is the oppression of not an ethnic group, but a class of professionals who have in good faith put forth considerable effort and commitment. Currently AMD products are ~35% cheaper and 10% more desirable on average (being conservative). We are gradually approaching duopoly. It is possible IMO we could see 40%MS units, 35%MS $, 90% ASP, and 30% market cap before the end of 07. Over 100$ per share. That is without growth premium. Shorter term maybe, Q4 06, 28-30% MS units, 23% MS $, etc... The damage to Intel might be mitigated by expanding markets or not, or they learn to compete on value, its possible. The trend is our friend and if AMD gets to some of these milestone, new Vistas will open.