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

To: Petz who wrote (227671)	3/7/2007 11:39:52 AM
From: aleph0	Read Replies (1) \| Respond to of 275872

// , why couldn't they just sell them in the channel? // They probably did, at a hefty discount I expect !

To: Petz who wrote (227671)	3/7/2007 11:50:33 AM
From: j3pflynn	Read Replies (1) \| Respond to of 275872

Petz - Whether or not it makes any sense, I don't know, but what I got from the call is that since AMD couldn't guarantee some in the channel the quantities they needed, they went to Intel instead. I'd guess there wasn't enough other demand in the channel, besides those customers who went to Intel, to pick up all the slack left by them. The Dell situation may not have come about in time for them to help those customers, who may have already switched the product line to Intel.

To: Petz who wrote (227671)	3/7/2007 1:04:10 PM
From: Rink	Read Replies (2) \| Respond to of 275872

Petz, re: Here's what I don't get about the "neglecting the channel" remark. So if AMD made a bunch of parts for DELL and DELL didn't make their sales targets, why couldn't they just sell them in the channel? Just a scenario: As long as the parts are reserved for Dell they can't sell them into the channel. It looks like Dell has taken less AMD chips than anticipated two quarters in a row. If this continues someone (probably AMD) should see an increasing inventory starting in Q4, and continuing into Q1 (larger miss). Reserving parts for Dell effectively makes them unsellable until Dell gives a sign that they won't need as many after all. The channel got spurned starting I think starting already in Q3/06 and a part of it turned back to Intel. As a result AMD might have lost some sales slots to Intel and now it left holding the bag as they can't sell the unexpected additional inventory as easily into the channel. Regards, Rink