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

To: wbmw who wrote (247768)	2/13/2008 7:44:37 PM
From: pgerassi	Read Replies (1) \| Respond to of 275872

Wbmw: Yes but PCs and laptops are rarely purchased solely by IT. They say what PCs and laptops are approved and the various departments buy them at the going rates and IT just sets them up. Given that some departments buy $3-5K PCs and related stuff, $100 more doesn't affect them much. You think of only the CPU price, not the whole system price with software included. A $100 price rise on a $3K workstation is only a 3% price rise. Thus demand only falls 3% given a total purchase cap, not the 50% you need for your argument to work. Think about it. Given the above, the CPU price is inelastic for an order of magnitude even at IT departments. Puts a knife into the heart of your argument doesn't it? Pete