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

To: Elmer Phud who wrote (219540)	12/7/2006 10:26:09 PM
From: THE WATSONYOUTH	Read Replies (2) \| Respond to of 275872

Did I say that? Read it again. It says P4 at the low end. It doesn't say dual core, and why make new product when you have inventory to dump? Who cares how much cheaper a smaller 65nm die may be to make when you have P4s sitting on the shelf and they'll fill the bill? What would you do? Scrap an existing die to make a cheaper one to sell at the same price? Everyone here talks about Intel's P4 inventory and you don't understand why Intel doesn't leave them on the shelf and make new equivalent ones just because they're cheaper. It's called inventory selloff. They're already paid for. They have no cost to produce. No new chip can ever be cheaper in it's place. That's what AMD will have to compete against at the low end until the inventory comes under control and then they will be facing newer 65nm lowend products. So, you claim all P4s are coming out of inventory? No P4s are being produced at all in Q4? Well, inventory should drop like a rock in Q4. How much did it go down in Q3? Anyone? But, that would free up all of the 2.5 fabs currently in full volume production to produce CWM. That would be about 47 million CWM in Q4 for Q1 sale. But that's likely all of Q1 sales. No need for any P4s from inventory. Sounds to me you are proposing the mother of all inventory screwups. Build multi millions more P4's than you can possibly sell and keep tons of capacity idle that could produce a much more desirable product line. Well, I guess that's possible. I mean.... with Intel having that chipset problem for what.... 6 quarters, I guess any thing is possible. Or, it could be much lower yields on CWM and CedarMill. LIke 45% and 64%. THE WATSONYOUTH