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

To: Gloo who wrote (241443)	9/29/2007 3:16:58 AM
From: wbmw	Read Replies (1) \| Respond to of 275872

Re: Are you disputing that Intel wouldn't significantly raise prices on their CPU's and/or delay price cuts that would have otherwise occurred? I have stated before that I believe pricing elasticity prevents Intel from significantly raising prices, even with the lack of competition. Sure, you will see Extreme Edition parts for $1000 for a long time to come, but expect overall ASPs to continue to decline as Intel aims to expand their Total Available Market by targeting lower cost emerging markets. And yes, they would do the same thing if AMD did not exist. Re: When I see their upcoming Penryn derived Dual Core at 3.0GHZ for $183, I could well imagine that if AMD has disappeared in 2006, they would have released this chip at a price closer to $400. Maybe, but they would have to find something that the market wants for $183. Intel's mature markets have very few new buyers. Almost every single end-user in countries like the U.S. is buying a PC to replace one that they already have, or wish to upgrade. Raising prices only delays this upgrade cycle, since the price/performance prospects get reduced with higher prices. This is what pricing elasticity is all about. A LITTLE bit of price hikes translates into A LOT fewer sales.