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

To: Sarmad Y. Hermiz who wrote (193967)	4/16/2006 11:36:58 AM
From: niceguy767	Read Replies (1) \| Respond to of 275872

"No. Intel will likely have GM of 55%-57%." Any thoughts as to why the estimated 5 point drop and how that might have impacted AMD's Q1 revenues, yet AMD's Q1 gross margin improved? "Regarding "much higher pricing structure", can you give examples ?" Nope. Just that it seems to be a commonly held belief that INTC chips garner a 50% premium over AMD chips. Granted, though, as you have pointed out, that may have changed significantly, along with many other AMD/INTC comparatives, over the past 12 months...again INTC's Q1 financials should provide some valuable additional data in this vein ;-)

To: Sarmad Y. Hermiz who wrote (193967)	4/16/2006 12:47:39 PM
From: j3pflynn	Read Replies (1) \| Respond to of 275872

Sarmad - TigerDirect sells a lot of outdated stuff, so I'd expect a lot of cheap Intel stuff there.

To: Sarmad Y. Hermiz who wrote (193967)	4/17/2006 1:10:17 AM
From: Petz	Read Replies (2) \| Respond to of 275872

re: <Regarding "much higher pricing structure", can you give examples?> Sure, in Q4, Intel had 78% of the CPU market (in units) and AMD had 22%. Intel sold 3.55x as many CPUs as AMD. But Intel's CPU revenue was 7.329B and AMD's 1.307B, a ratio of 5.6. Therefore, the average price of an Intel CPU is 5.6/3.55=1.58 times larger than the average price of an AMD CPU. The ratio probably narrowed a bit in Q1, but we won't know that until Intel reveals their CPU revenue and Gartner and others chime in with their CPU market share estimates. Petz