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

To: TimF who wrote (184028)	4/10/2006 1:18:18 PM
From: Sarmad Y. Hermiz	Read Replies (2) \| Respond to of 186894

>> Either way I don't see any reason to foresee a large per unit cost increase from AMD. OK, so that's one place of verifiable difference between our outlooks. We'll have our first look at how that is progressing in July. If AMD share (or gross margin) is not lower than q1, then my model belongs in the trash. >> At least in server chips the relative change between AMD and Intel has a lot to do with AMD's chips being very competitive. That is evolving into its own market segment, especially if specialized chip-sets, co-processors and software are developed for it. Of course if that happens, it will be the logical antithesis of placing value on x-86 and 32 bit compatibility. The new specialized market will have to support that food chain. The remainder of Intel's and AMD's x-86 product line should have a flexible price-demand response. It could well be that Intel will hurt itself to spite its nemesis. >> I'm not saying I believe it isn't true either, Again that unspoken assumption is at the base of the belief that Intel can under-price AMD only by doing grievous harm to itself. Let me ask here the same question that none of the AMD partisans answer. Do you think that Dell pays a higher price for Intel chips than H-P pays for equivalent AMD chips ?

To: TimF who wrote (184028)	4/10/2006 3:12:14 PM
From: Yousef	Read Replies (1) \| Respond to of 186894

Tim, Re: "I don't think variable unit costs at the fabs matter an enormous amount ..." I agree that variable and fixed costs are probably not much different between INTC and AMD. However, how about yield ?? This will drive the COS for both. This will directly affect/change gross margin. If INTC has higher yield (which I believe they do), then INTC can lower prices more than AMD and still be making money. Granted, INTC will not make as much as before, but AMD will go into the "RED". Make It So, Yousef