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

To: Paul Engel who wrote (47052)	1/22/1999 4:03:00 PM
From: Tenchusatsu	Read Replies (2) \| Respond to of 1573988

Let's put it this way. With Pricewatch's $153 figure for the 400 MHz K6-2, one of three things may be happening: 1) The price could be a healthy 10 or 20% above AMD's price to the merchant. 2) The price reflects a break-even margin or a loss, but the merchant will make a profit by selling other components with the CPU at regular prices. 3) The price reflects a loss because the merchant is liquidating his stock and going out of business. If case #1 is true, then the ASP for the 400 MHz CPU is somewhat below $153. If it's case #2, then we can't say much for the ASP, but we can guess that demand isn't terribly high for the K6-2 400 MHz, or the supply is outpacing demand, which is why such deals have to advertised to move the K6-2 off their shelves. If it's case #3, then we really can't use the price to predict the ASP. Tenchusatsu

To: Paul Engel who wrote (47052)	1/22/1999 4:48:00 PM
From: Kevin K. Spurway	Read Replies (1) \| Respond to of 1573988

Re: "The point is, that $153 represents the HIGHEST ASP that AMD is getting for its chips at this moment in time." I don't think anyone is arguing with you about this. Petz was pointing out his belief that this ASP is higher than AMD was getting for its highest end chip in November. That is a relevant point, regardless of what the actual dollar amount the processor sells for. After all, we know what AMD's blended ASP was for the last quarter. Re: "Considering distributor margins, AMD's price for that chip will be LESS than the $153 by 10 or 20%." Probably closer to 20%+. Kevin