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 : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: exhon2004 who wrote (59599)	7/9/1998 1:29:00 PM
From: gnuman	Respond to of 186894

Greg Gimelli, re: "And how would the "big guys" propose to accomplish this, by agreeing to pay them more money than they are currently asking for their product???" No. By providing them with a well known brand for a platform, and paying fair value. Also, I think they have good business relationships. AMD provides value, especially as a lever against Intel. But the makers want the K6-2, and have introduced that in the past couple of weeks. I think more of the top 10 will provide this solution. If you look at Q2, AMD's problem was too many K6's and not enough K6-2's. My guess is the K6-2 sold for $130 in Q2 and will stay above $100 in Q3. Here's a post I made on the AMD thread. Explains my feelings on ASP. <I think you can make a case that ASP's will increase in Q3. While there was good unit growth in Q2, too much of the product was K6. There is probably a lot of inventory of this product in the system, and their ASP's are probably less than $70. 2.2M K6 units at $70 and 0.5M units K6-2 at $130 fits the Q2 numbers. (Just my guesses, though). The system will probably flush out the K6's in some real cheap boxes. I think there is a market for the K6-2's. Clearly Compaq, IBM and HP would prefer these in their low end product. If AMD were to only sell 4M units but change the mix to say 1M K6's and 3M K6-2's, I think the ASP would grow. Even if the K6 sold for $60, and the K6-2 for $120, that would raise the ASP to $105. It would also generate $420M CPU revenues. The ASP's may be somewhat lower, but it looks like the product mix going forward is the real key. >