Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Tenchusatsu who wrote (260239)	5/15/2009 1:35:22 PM
From: combjelly	Read Replies (1) \| Respond to of 275872

"And flooding the market with an extra million PCs built around an extra million dumped CPUs isn't going to have an effect on profit margins?" Who said anything about flooding? The CPUs were going to be moved one way or another. And wind up in systems. "I think we're at the point where speculation is filling in the blanks. I've made my point already." Speculation implies using some knowledge. What you are doing is more along the lines of fantasy. "The OEM does not have to accept the dumped CPUs." The CPUs weren't dumped. You use of this terminology is very revealing about your motives. "You think they do because of market conditions and because it's real easy for the OEM to just add it to their whole business strategy." Well, duh Tenchu. The OEMs refresh their entire line every few months. How hard is it to put in a line with a non-Intel processor? From the press release, we know what the difficulty was. The loyalty rebate program Intel used made it too costly. Again, in the desktop market the margins are thin so even a few dollars per CPU more can translate into massive losses. Intel leveraged that. The OEMs aren't stupid. They were fully aware what Intel was doing. But they didn't have a choice.