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

To: Windsock who wrote (260229)	5/15/2009 12:36:05 PM
From: fastpathguru	Read Replies (2) \| Respond to of 275872

Homework assignment for Windsock: Read and attempt to comprehend the actual finding: For example, rival chip manufacturer AMD offered one million free CPUs to one particular computer manufacturer. If the computer manufacturer had accepted all of these, it would have lost Intel's rebate on its many millions of remaining CPU purchases, and would have been worse off overall simply for having accepted this highly competitive offer. In the end, the computer manufacturer took only 160,000 CPUs for free. fpg

To: Windsock who wrote (260229)	5/15/2009 12:50:31 PM
From: combjelly	Read Replies (2) \| Respond to of 275872

"Here is a home work assignment for you." Better watch it Windsock. If you keep spinning like that you are in danger of drilling yourself into the crust... First off, you are assuming it was server CPUs. We don't know that. It is much more likely those million processors were for a desktop. Possibly a laptop, but not as likely. The engineering costs for such is a lot lower. They basically approach one of their manufacturing partners, who very likely is already building AMD based machines for someone else, point to one of them and say "I want to buy a million of those with this list of changes". Then, given that the cost of the processors is $0, they have a marvelous margin and return on investment.