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

To: Frank13 who wrote (226222)	2/17/2007 1:14:25 PM
From: rzborusa	Read Replies (1) \| Respond to of 275872

Why do you suppose they want to gain market share?

To: Frank13 who wrote (226222)	2/17/2007 4:42:27 PM
From: Petz	Read Replies (2) \| Respond to of 275872

re: <<<AMD aiming for 30% market share with its quad-core server processors, say sources digitimes.com >>> <<DRBES: shares will really take a dump on that>> <YOU: why wouldn't they? Nowhere have I read that AMD's goal was to make money. AMD is after market share at any costs.> Frank, if AMD succeeds in taking 30% of the quad-core server market, they will be profitable on the strength of that alone, as each quad core server processor sells for 10-20x as much as a desktop processor. But if AMD even thinks they have a chance of doing that, hitting 30% of quad-core server market, it must mean that 1. The Barcelon will outperform the Xeon 5300 series by a considerable margin 2. The ramp will be pretty decent 3. Therefore there will be some "halo effect" due to quad core desktop chips, which will halt, and possibly even reverse the falling ASP's brought on my being uncompetitive with Intel's best for a period of 6-9 months. Petz

To: Frank13 who wrote (226222)	2/18/2007 2:56:42 PM
From: Joe NYC	Read Replies (1) \| Respond to of 275872

Frank, And why wouldn't they? Nowhere have I read that AMD's goal was to make money. AMD is after market share at any costs. AMD is committed to certain capacity, and with that commitment, there is not a lot of ways to make money other than selling out the capacity. The second component of making profit is pricing (in addition to volume), and AMD does not have a lot of room here either. First, Intel crashed prices a year ago, and than set Conroe pricing at fairly deep discount compared to its performance. As a result, AMD just needs to stay the course until it can do something with its new products (Barcelona core) to recover the pricing. (for lack of alternatives). But I am a little sceptical here. It takes 2 to result in recovered pricing. Preliminary intel pricing roadmaps seem to indicate anything but a price recovery. Anyway, that's my opinion. I am curious as to your opinion, since you made a statement: "Nowhere have I read that AMD's goal was to make money. AMD is after market share at any costs." I am curious about what other direction do you see AMD can take from here to increased profitability - other than going after a bit more market share. Joe