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

To: wbmw who wrote (241469)	9/29/2007 6:40:22 PM
From: Reseller Mike	Respond to of 275872

WMBW, if Microsoft offered their operating system for $50 I assume you are speaking of the retail price. I would guess based on my experience and speaking to others in the business that the average OEM price is closer to $50-55 than $100. If I was able to buy at $75 or less than I am certain that Dell, HP, IBM, etc (all of the large OEMs) could certainly get it for less than $55. Regards.

To: wbmw who wrote (241469)	9/29/2007 7:32:28 PM
From: jay101	Respond to of 275872

<<....The law should be designed to stop Intel when they become a harmful monopoly, not if they stand a chance of becoming a harmful monopoly.>> That was a great post ! You gave some excellent insights. J

To: wbmw who wrote (241469)	9/29/2007 10:07:26 PM
From: graphicsguru	Read Replies (2) \| Respond to of 275872

wbmw: With due respect, UTTER HOGWASH. I value your posts in general, but in this case, you're dead wrong. Let's take a hypothetical scenario. AMD continues to lose money at the rate of $.5 billion/Q for a few quarters. They find themselves in default of the Dresden loan covenants. They can't do anything. Dresden banks reposess Fab 36/38 and sell it to TSMC. Game over. Now Intel has a complete monopoly. Intel raises prices by $50 per chip across the product line, and doesn't change the distribution of skus. If they sell a similar volume, their profit goes up by something like 50 milliion units times $50 which is $2.5 billion/ Q Do you want me to believe that demand for P.C.'s suddenly falls off a cliff because of the $50 hike? That a 10% increase in the price of a $500 computer will cause demand to fall off by more than AMD's production? Why if that were true, we'd see currency fluctuations causing massive changes in PC demand. But guess what? They don't. I'm well aware of the meaning of price elasticity. But you're attributing an outrageous elasticity to this market with absolutely no justification. Let me ask you: do you have a position in AMD or Intel? Because if you really believe what you've written, it would be hard to justify investing in Intel.