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

To: DRBES who wrote (214812)	10/24/2006 9:17:01 PM
From: pirasa2	Read Replies (3) \| Respond to of 275872

A quick look at newegg shows that the X2 line is still too expensive compared to Conroe. AMD had better not expect to move a lot of 5000+'s in retail, for example, when it prices them $14 more than a Conroe 6600. Given Conroe prices, if AMD wants its high end chips to move in retail, the 4200+ should be around $140, the 4600+ should be around $160-180 instead of the current $267, the 5000+ should fall to $210-220 from $329, and the 5200+ should cost around $250, not $399. Even at the lower prices they barely become competitive for DIYers as they are not nearly as good overclockers as Conroes. Maybe this is all game-theoretic, AMD is deliberately letting Intel derive very fat margins on its Conroes so as to signal its willingness to co-exist with Intel without a price war. Tacit collusion, in other words. Intel could respond by accommodating AMD's 80 million unit sales goal for 2007. An announcement of further cutbacks for its 2007 Capex budget would be Intel's signal for that.