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.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (35158)	7/28/1998 11:24:00 AM
From: kash johal	Respond to of 1585056

Petz, I think the problem will be in the ASP's. I don't know the K6 vs K6-2 mix and suspect the K6 may be on firesale this quarter dragging down ASP's. I think you confuse the $100 street price with the real price AMD is shipping to dealers and OEMs. Also this 650M breakeven number is not independent of wafer/mfg costs etc. It was an approximate number from 3-4 months ago. As AMD invests more (as it must in Dresden) etc the break even number may be higher say $700M. I think it is incorrect to assume that they sell another $150M of product (at whatever cost) and this makes them breakeven. Regards, Kash