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

To: Process Boy who wrote (56570)	4/27/1999 9:43:00 PM
From: Bill Jackson	Respond to of 1571815

Process Boy, That sounds like the party line. Intel may well have an average ASP of $227, but that could be spin control from price list averaging. Is it the total CPU sales divided by total CPUs sold? Take out other products, patents, memory, etc. SInce AMD lacks the ability to supply the number of chips that Intel can supply, Intel would have made more money by upping the ASP by $100 and letting AMD ship whatever it could make. Since AMD sold all it could make for the last year this would have dropped another $6-8 billion to the bottom line of Intel, more or less doubling it's profits. At the same time the AMD ASP would go up by $100 and AMD would have made a good profit. Intel decided to price AMD into a loss position in a purposful way. If AMD and Intel made exactly the same product mix, (like Amoco and Shell gasolines) then this process would have hurt Intel and AMD equally. Since AMD sells only lower end goods Intel can keep it's monopoly products high in price(or have you seen any $227 Xeons lately?) and make far less on the celerons than AMD makes on it's K6. In fact Intel would not do very well at all if it only sold celerons in slot one style, , happily that dodo is near extinction. Bill