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

To: Petz who wrote (195042)	4/25/2006 12:26:23 PM
From: dougSF30	Read Replies (1) \| Respond to of 275872

That's correct. AMD said they cut server chip prices in Q1 to grab more share. It worked. And during the call they confirmed server ASPs were down.

To: Petz who wrote (195042)	4/25/2006 1:09:19 PM
From: TGPTNDR	Respond to of 275872

Petz, Re: The AP story is manufacturing info that the ASP of AMD's server chips fell in Q1, based on Dirk's comments. Dirk didn't say that, did he?> Question - Adam Parker: In terms of the server, mobile and desktop breakdown, if your revenue is flat and you said your ASPs were up and all three segments, correct? Answer - Henri Richard: No, no. I said they were up in mobile and in desktop. You probably took notice of a change in pricing strategy that was planned in our Opteron lineup that took place in February. We have a strategy to drive a very aggressive penetration of our dual-core 2P offering. That strategy worked, with a very sharp increase in units. . . Question - Krishna Shankar: Okay, then -- given the sequential slight decline in several ASPs with your competitor trying to ship a lot of their existing generation of server product before they ramp up the newer generation in the second half, do you anticipate continuing pressure on server ASPs as they attempt to work down the inventory of their current generation? Answer - Dirk Meyer: It is Dirk here. My response to that one is to remind you that our server ASPs decreased, but not as a reaction to the competitive environment, rather we decided to take an offensive stance relative to our pricing, given the capability of the product, the technology leadership in the product, and price in order to increase the size of our footprint in the marketplace, i.e., gain share. So what we did was not a reaction. epscontest.com Question - John Lau: Great, thanks for taking my call. Back onto the server question again. I was hoping you can give us a little more clarity. There has been a mix shift towards your dual-core chips on the server side. I think that you are shipping the final -- phasing out the single-core Opteron soon. Yet during Q1 your ASPs were down for the servers. I was wondering how that dynamic worked? [garbled] Answer - Henri Richard: First, we’re not going to phase out our single-core processors as long as customers want them. It is true that we expect to exit the year with over 90% of the demand in the server space being dual-core. In fact there is some long-range embedded design that may require those type of processors. So that is the first point I wanted to clarify for you. Secondly, as Dirk pointed out, we have a strategy to increase the penetration of dual-core technology as fast as possible in certain segments of the server market. We repositioned our stack at the beginning of February in order to drive that strategy, and it worked out exactly the way we planned. And so the overall decline in ASP is first anticipated, and secondly, absolutely centered around our 2P offerings. epscontest.com Somebody said, during the Q, that INTC was subsidising Dell to bring Price/performance of their servers up to AMD levels. I believe this was a reaction by AMD. "No you don't, we're taking share kind of thing." -tgp