Another blown oportunity for AMD

[Phynaz]

Now that Michael Dell is back in charge, Intel gets the business.

Text

 

[Viditor]

Originally posted by: Phynaz
Now that Michael Dell is back in charge, Intel gets the business.

Text

Cool...a $223 computer. I guess if Intel needs to dump their Netburst inventory, this would be the way to do it.
I can't see AMD crying about this at all, Intel is welcome to that contract!

 

[nyker96]

With so many people without computers in China, this is an opportunity for Dell to make some serious money if they can top Lenovo that is.

 

[Keysplayr]

Originally posted by: Viditor

Originally posted by: Phynaz
Now that Michael Dell is back in charge, Intel gets the business.

Text

Cool...a $223 computer. I guess if Intel needs to dump their Netburst inventory, this would be the way to do it.
I can't see AMD crying about this at all, Intel is welcome to that contract!

Why wouldn't you think AMD wouldn't want to minimize their losses rather than total loss?
Sure, Intel may be taking a beating on leftover Netburst chips, but they are at least minimizing loss by unloading them. Even if under production costs. This price war is brutal. Havent seen one like this, I don't think ever! AMD should try to hold on to whatever they have with white knuckles. I'll tell you, if Barcelona does the job (competitive with Intels simultaneous offerings in performance and price) I will go the AMD road, just to support them. I do not want Intel to have ALL the marbles like they used to. I don't think (or rather I hope) that AMD will let that happen. Graphics cards is another story. R600 isn't looking to good as of right now. So Nvidia will most likely be getting my coin. Sorry AMD. But I won't mind going Barcelona if it competes well.

 

[StopSign]

Despite the "below average" specs on these machines, they can be considered decent in China's market. When I went there to visit relatives in 2004 a lot of people were still using P3's.

 

[Viditor]

Originally posted by: keysplayr2003

Originally posted by: Viditor

Originally posted by: Phynaz
Now that Michael Dell is back in charge, Intel gets the business.

Text

Cool...a $223 computer. I guess if Intel needs to dump their Netburst inventory, this would be the way to do it.
I can't see AMD crying about this at all, Intel is welcome to that contract!

Why wouldn't you think AMD wouldn't want to minimize their losses rather than total loss?
Sure, Intel may be taking a beating on leftover Netburst chips, but they are at least minimizing loss by unloading them. Even if under production costs. This price war is brutal. Havent seen one like this, I don't think ever! AMD should try to hold on to whatever they have with white knuckles. I'll tell you, if Barcelona does the job (competitive with Intels simultaneous offerings in performance and price) I will go the AMD road, just to support them. I do not want Intel to have ALL the marbles like they used to. I don't think (or rather I hope) that AMD will let that happen. Graphics cards is another story. R600 isn't looking to good as of right now. So Nvidia will most likely be getting my coin. Sorry AMD. But I won't mind going Barcelona if it competes well.

Why would you think AMD isn't selling every chip it makes at a better profit than this deal would be?
At the price of these systems, Intel is probably making the same on the CPU as they are on the chipsets...
It's funny because this is exactly what AMD had to do when the Athlon was first released. Near the end of the Athlon's first year, AMD dumped all of their K6 inventory into China (and a few other non-antitrust countries) at cost...that's why their marketshare spiked so quickly that year.
Fortunately for them, they are no longer in that position.

As to Barcelona, it's pretty much guaranteed to be far better in the server area. It's the desktop chips that we shall have to wait for benches on...

 

[TecHNooB]

Torrenza/Fusion and Stream Processing will save AMD! And whatever they plan to do beyond 10 cores..

 

[Phynaz]

Why would you think AMD isn't selling every chip it makes at a better profit than this deal would be?

Because their inventory doubled last quarter.
Because they are missing their numbers.
Becuase they are having fire sales to move product.
Because Hector is sacrificing everything to get to 30% market share.

Intel does make a profit on each one of these chips. And it's one less sale for AMD. And it builds brand awareness, when these people upgrade there is a good chance they will upgrade to another Intel based product.

You sure were excited when AMD got some of Dell's scraps. All of a sudden that business isn't important I guess. I recall you were also pretty pumped about the OLPC machine using AMD chips. So $100 machines are good, but $250 machine aren't?

 

[Kur]

I'm gonna take a wild guess and say that dell went with Intel because AMD dropped their S939 set and because DDR2 is still higher there would be no point to AM2 chips for a cheap computer when you can throw in a cheap mobo, a somewhat outdated CPU and throw in some cheap ram and tada you have a cheap computer.

 

[HopJokey]

I believe AMD is really hurting right now and will be for most of this year. Beyond that it's a wait and see game.

Also, is it just me or is Phynaz like the direct opposite of OcHungry?

 

[Matt1970]

To cut costs, the computer will have an Intel Corp. processor, either 256 megabytes or 512 megabytes of memory and the Windows XP Home Edition operating system instead of the newer Windows Vista.

I guess that's better than the 128Meg Windows XP machines Dell used to spit out to the public.

 

[swtethan]

Originally posted by: HopJokey
I believe AMD is really hurting right now and will be for most of this year. Beyond that it's a wait and see game.

Also, is it just me or is Phynaz like the direct opposite of OcHungry?

examples?

 

[myocardia]

Originally posted by: HopJokey
Also, is it just me or is Phynaz like the direct opposite of OcHungry?

No, it's not just you. I was trying to remember who he reminded me of, but thanks, you kept me from having to remember.

 

[Viditor]

Originally posted by: Phynaz

Why would you think AMD isn't selling every chip it makes at a better profit than this deal would be?

Because their inventory doubled last quarter.
Because they are missing their numbers.
Becuase they are having fire sales to move product.
Because Hector is sacrificing everything to get to 30% market share.

Intel does make a profit on each one of these chips. And it's one less sale for AMD. And it builds brand awareness, when these people upgrade there is a good chance they will upgrade to another Intel based product.

You sure were excited when AMD got some of Dell's scraps. All of a sudden that business isn't important I guess.

Phynaz, I see you've taken to just making things up now (or you just accept any anti-AMD rumours as truth in truly troll-like fashion).

1. AMD's finished goods inventories at the end of last quarter was $186 Million, and Q4 2005 was $146 Million. Considering Fab 36 has come fully on-line between then and now and that they now have to supply Dell as well, they're actually a bit down on normal inventory!

2. How does having a sub-optimum Gross Margin mean that they need to dump chips below cost in Asia??? If anything, it means the opposite...

The next 2 aren't even worth responding to...

Of course you know for a fact that Intel makes money on those chips? Well, let's compare...
The cheapest US Dell (Intel based) computer is the E520 at $369, and it's configured similarly to the EC280. So, to get the price down to $233 (-36%) there is no way on Earth that Intel is making a profit on those chips...that also explains why they are only being sold in China. There are no "Predatory Pricing" laws in China, so there's nothing to stop Intel from doing this.

If AMD were selling to Dell at a loss, I would be joining the rest of the shareholders in bouncing Hector...fortunately, he's much smarter than that and knows when a deal is to expensive to take.
As keysplayr pointed out, Intel is another matter...they have a huge amount of inventory that isn't selling at the moment. While C2D is an excellent chip, it's still only 40% of their production at the moment, and it's better that they at least get something for those chips.
My guess is that Intel is selling them for just a fraction over the tax write-off value...

 

[Phynaz]

Viditor, you are quite full of yourself.

You failure to respond just shows that my points are, in fact, correct and irrefutable.

Unlike your wishes that Intel is losing money, AMD is in fact in very dire straits.

 

[Viditor]

Originally posted by: Phynaz
Viditor, you are quite full of yourself.

I guess it's relative...I understand what I've researched, and I understand that what you're spouting is nonsense.

You failure to respond just shows that my points are, in fact, correct and irrefutable.

That was pretty funny! I suppose that if I met a person who claimed he was from Neptune and I didn't dispute the point, it would prove conclusively that he was!
BTW, if you just use that scroll thingy, you'll see that I did indeed respond...

Unlike your wishes that Intel is losing money, AMD is in fact in very dire straits.

Whatever gave you that idea? I hope like Hell that Intel makes money! I own quite a few Intel shares at the moment...

 

[Zap]

Originally posted by: Viditor
Cool...a $223 computer. I guess if Intel needs to dump their Netburst inventory, this would be the way to do it.

I wonder if any of the super low price has to do with the operating system? I seem to recall that Microsoft was releasing a super cheap version of XP for certain emerging markets.

 

[Viditor]

Originally posted by: Zap

Originally posted by: Viditor
Cool...a $223 computer. I guess if Intel needs to dump their Netburst inventory, this would be the way to do it.

I wonder if any of the super low price has to do with the operating system? I seem to recall that Microsoft was releasing a super cheap version of XP for certain emerging markets.

I would think they absolutely were...but even if they used Linux for free, that only saves about $40 off Dell's costs (Tier 1 OEM prices for MS are very cheap...). My guess is that they've negotiated stripped down mobos with the cheapest chipset, Celeron 331s or the like, and a bunch of 40/80GB Samsung HDDs...the PCs probably cost them a total of $125-$175 each.
Of course they have to add design, shipping, assembly, testing, warranty, and profit to that number.

 

[IEC]

Originally posted by: Viditor

Originally posted by: Phynaz
Viditor, you are quite full of yourself.

I guess it's relative...I understand what I've researched, and I understand that what you're spouting is nonsense.

You failure to respond just shows that my points are, in fact, correct and irrefutable.

That was pretty funny! I suppose that if I met a person who claimed he was from Neptune and I didn't dispute the point, it would prove conclusively that he was!
BTW, if you just use that scroll thingy, you'll see that I did indeed respond...

Unlike your wishes that Intel is losing money, AMD is in fact in very dire straits.

Whatever gave you that idea? I hope like Hell that Intel makes money! I own quite a few Intel shares at the moment...

Ignore phynaz, he's a troll who uses straw men and ad hominem attacks in a futile attempt to distract attention from his basic inadequacy. I guess an anti-AMD troll serves as a counter-balance to all the anti-Intel trolls...

For the record, I'm using an Intel dual core processor in my desktop and an Intel mobile chip in my laptop. My previous three rigs (462, 754, 939) were all AMD.