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

To: Kevin K. Spurway who wrote (41490)	11/14/1998 1:36:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1573757

Re: "Elmer, here's a theory:"Die bank" refers to finished wafers that haven't been packaged." No kidding? Well gee, I guess you learn something new every day! Re: "As far as ASPs are concerned, if AMD yields $150 good K6-2 350s per wafer, and Intel yields 70 (call it 75--I'm feeling generous and its easier math), then Intel's Celeron ASPs have to be double what AMDs are for the dice to be equally profitable. Is this case?" I have reason to believe Maxwell's numbers are inaccurate, perhaps extremely so, and in addition, Intel's raw wafer costs are lower than AMD's. I can't argue the finer points of finance here because neither of us has access to that information, nor would it be wise to present it if we did. Bottom line is that one company seems to be making a great deal of money while the other doesn't. That should tell you something, but not everything, about manufacturing costs, customer demand, and pricing. Re: "Hint--Mine is that even if AMD were demand constrained, they'd be able to lower prices a LONG way before their K6-2 wafers were less profitable than CeleronA wafers. Since AMD chooses not to lower prices even more, I have to conclude they're not demand constrained." So they decided to build up a die inventory rather than sell them? Brilliant! Hold back your product until the price drops even further! I fail to see the logic in that. EP