Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: firthoffourth who wrote (199664)	5/31/2006 10:21:05 PM
From: smooth2o	Respond to of 275872

RE:It would be interesting to see the market's reaction to that considering Andy Bryant just told the entire investment community that they could reduce costs without any active head count reduction. I suspect a 1.5 billion dollar cash charge would result in a significant loss and quite a sell off for the stock. Dont' think so. Usually these things are taken very well on WS. Smooth

To: firthoffourth who wrote (199664)	5/31/2006 10:49:15 PM
From: dougSF30	Read Replies (2) \| Respond to of 275872

sure Doug, you can keep ignoring price, AMD's customers won't - neither will the end users for that matter. The "enthusiast market" is peanuts compared to the value/mainstream where AMD WILL be able to compete on price/performance and still grow revenue and earnings. You don't seem to understand the notion of the sweet-spot, and the speed/power bin distribution. Of course AMD will have to cut prices, a lot, and that is where the pain comes from. Their sweet spot will perform like Intel's low-end, and need to be priced accordingly. That is much more important than their high-end performing like Intel's mid-end, and being priced accordingly, from a direct financial POV. The latter costs in PR and prestige, but it's the fact that the whole distribution of Intel Core2 parts outperforms the whole distribution of AMD K8 parts that is the real problem. If the X-axis is performance, and the Y-axis % of parts, then the Intel curve will be shifted to the right of the AMD curve by 20% or so. As the X-axis is also a proxy for pricing power, you see the issue.