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

To: fastpathguru who wrote (260271)	5/15/2009 4:41:43 PM
From: JCB01	Read Replies (1) \| Respond to of 275872

I am assuming that basically they (the manufacturer) believe that they can only sell a given amount computers within the next two quarters or so, and beyond the cpu's will have aged to the point of not being desirable to have in the lineup. Then why did you bring up the grey market? Part of my original post. If the chip were truly free with no conditions attached, I'm sure the customer would have said, "OK, yeah. Send me the million. I'll build up what I can sell and unload the rest via grey market, grey dumpster or whatever since they cost me nothing" On the other hand requiring that the customer build up computers around all of the accepted chips requires an investment on their part in material and assembly, and they will have to move them to recoup that investment. You can see why AMD would attach such a requirement, don't you? Why would they want a flood of say 500 K processors suddenly appear on the greys well below what they would price them at? AMD would lose even more money than on just the chips they gave away. Anyway, a key part of my assumption is that the OEM in question didn't have enough incentive to pull part of an order from Intel and switch it to AMD even at 0 dollars. Another key part of your assumption is that there wasn't, as the EU asserted there was, a Sword of Damocles hanging over HP (I.e. Intel's threat to withdraw their first-dollar rebate) that would fall if they strayed to far in AMD's direction. Of course. Any change in orders/strategy has to make sense to the OEM in terms of the bottom line. Loss of a rebate, loss of allocation, etc. are all going to affect said bottom line.