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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: The Duke of URL© who wrote (183641)	3/4/2006 2:15:23 AM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 186894

First, I think it is untrue that PC buyers prefer AMD chips due to performance. There may be some, but the vast majority buy computers based on price, and computers with AMD chips are always priced lower than performance-comparable Intel. The important question is how does AMD price its chips so low and still get 57% gross margin. there are a couple of possibilities. 1- maybe AMD is just more efficient than Intel. or 2- maybe their true costs and margins are obscured by all the spin-off, converts, debt, etc... that took place in the recent months. So whether AMD picks up more share or not depends very little on technology difference, and mostly on whether AMD can maintain the $50-$100 discount on their chips. If they can, their share will go up, and if not, not. As far as technology, I really doubt that 10% performance difference matters to anyone. Or is noticeable by anyone using normal applications.