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

To: firthoffourth who wrote (202105)	6/14/2006 12:14:53 PM
From: Magrathea	Read Replies (1) \| Respond to of 275872

Exactly what laws would INTC be breaking if it sold allocated Conroes to friends that helped it move the old inventory out the door? Assume there is no longer any 'AMD factor' in the mix. A OEM can build and sell as many AMD system as they like. But to get 1000 Conroes in 4Q, you gotta buy 3000 P4's in 3Q. What laws does that break? I'm thinking that strategy/scheme is the new 'rebate' system. "Sell the old stuff at prices we sell to you that are higher than the market will bear, and we then sell you the new stuff at a price lower than market price [1]. The difference between what you buy the Conroe from us and what you can sell it for in a system is your rebate for moving the old stuff." [1] If Conroes are on allocation, then there is more demand than supply at that stated price. The market clearing price must be higher. The difference between the list price and the market clearing price (it's been too long since comps for me to remember the actual term) is the new rebate. -Magrathea