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

To: firthoffourth who wrote (201183)	6/8/2006 6:29:33 PM
From: niceguy767	Respond to of 275872

"ASP convergence has been happening for years, but pretty soon they will be within 15% maybe even closer. How well can Intel possibly do if they have to live on $115 ASPs? AMD will certainly need to respond, but they will be doing so at a time when production capacity is increasing 5 fold (65nm on 12inch). These price cuts tell me Intel is VERY concerned about the prospect of this. I wonder how long Intel's BOD would allow this pricing to continue if it sent Intel into the red and AMD still took share and operated at a profit?? Very acute observation from this vantage point. INTC's profit margins have been eroding since Opteron arrived on the scene and all actions by INTC to date (and don't think for a moment that INTC hasn't explored every ooher possible action to stem erosion for the past year in effort to avoid the "last ditch" P4 price cuts now being offered. All previous actions by INTC to stem customer erosion have failed miserably and this "last ditch" P4 price cut is the action of a company that has no other alternative. INTC is getting beat up badly by AMD and Q2 results will confirm exactly that. (However, the trio of INTCmaniacs in our midst will no doubt jockey for more Conroe time all the while in total denial that AMD's next phase innovative initiative, co-processors, is about to blow Conroe out of the pond) ;-)