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: Rink who wrote (207659)	8/5/2006 1:23:16 PM
From: Elmer Phud	Respond to of 275872

In other words it is likely that most of the inventory added in Q2 was non NGA related. That's a rather valuable point, wouldn't you agree? Sure it is. I'm not trying to argue it away.

To: Rink who wrote (207659)	8/5/2006 1:27:33 PM
From: Sarmad Y. Hermiz	Respond to of 275872

>> Another question is if most of the inventory that'll be added in Q3 (per guidance) will be non NGA related as well. Rink, Listening to the Intel CC, I had the strong impression that Intel's managers do not consider P4 and Celeron obsolete at all. They expect P4 to be saleable at a low, but profitable price. I think that explains their guidance for lower gross margin. I also expect their standard is whether a product adds incremental profit, and not the level of margin. That makes sense when capacity is not constrained. I think the model that explains their mind-set is one where they'll price NGMA processors for a desired gross margin, and sell the P4's at a price that brings in the guided level of revenue. Regards, Sarmad