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

To: pgerassi who wrote (189660)	3/14/2006 6:16:34 AM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 275872

>> It takes Intel a 33% reduction in price across the board to sell at parity. Pete, where does this 33% number come from ? Is it derived from Intel ASP being $150 and AMD $100 ? These average selling prices (ASP) are not like-for-like. If we look at PC systems sold as equivalent (for example, by H-P which sells both Intel and AMD) we can see that the processor chips in them are already at price parity. Although some folks claim the AMD chips perform better, my experience is that in normal usage, the difference is not apparent. The CPU's in these systems, whether from Intel or AMD, retail for approx same price. Even a few dollars reduction in the price of the processor would noticeably increase the profit of the system seller. Per unit profit margins on PC's are very thin, and system makers would definitely be influenced by a $10 reduction in a component. Sarmad