Holy crappers, AMD to cut prices up to 50% !!!!

[etech]

I didn't read the entire thread so my apologies if this has already been posted.

AMD readies new Athlon, Duron chips

"AMD Chairman and CEO Jerry Sanders stated recently that it's his goal for the company to reach 1.5GHz with a desktop Athlon in January. To meet the goal, AMD will ship faster Athlons approximately every five to six weeks. The 1.2GHz is the next step towards that goal. A faster Duron chip, running at 800MHz, will join it, sources said."

I think AMD is taking advantage of Intels problems to grab market share. The more markets and suppliers they can reliably do business with , the more that will stay with AMD even when Intel gets their act together again.

Ain't competion grand though.

 

[Finality]

Eli I always felt it though

In order for AMD to expand they need two things a large market share (with consumer/OEM confidence of course). As important though is a large bottom line. If they keep lowering prices they will eventually run into a brick wall and when it hits its going to hit them hard

How do you think Intel has been so successful? Granted they did go big and fat just like M$, but take a look at there market cap.

BTW I am glad they are doing this it just gives consumers more choice and puts more pressure on ChipZilla.

 

[Rectalfier]

omg T-bird 900's discontinued, their yields must be amazing.

This looks like the finishing blow.

 

[Midnight Rambler]

<< If they keep lowering prices they will eventually run into a brick wall and when it hits its going to hit them hard >>

Finally, somebody in this thread that understands Econ. 101. Point of diminishing returns.
But it's definitely going to be interesting to see pricing when Intel has the P4 1.4GHz starting out at $695. Of course, all these prices, both AMD and Intel, are for mass quantities only. You can probably add 15-20% to get the street prices ... for legit CPUs that is, ie. no gray market crap with funky warranties.

 

[bernse]

I do have a basic understanding of economics, but I don't agree with you. The top tier of CPUs will always be the ones were the high margin is made, and the lower ones make it in volume. That said, as long as the clock speeds increase and charge a good dollar for them, they cycle could go indefinetly, as far as I can tell. AMD is finally looks like it is in a postion to be followed other than do the following. Their company plan seems to be doing amazingly well for the past FY and I doubt it will change any time soon. The only thing that I could possibly see as a worry is if their compition begins to evaporate and then they cash in on a &quot;virtual monopoly&quot; a'la Microsoft allegations, or Intel of old.

 

[Haervii]

Bernse- HAHAHA!! Well, while I agree with you that AMD is going to keep going up and up, and Intel down, Intel is and always will be more popular and dominant just because people are biased and Intel has such a long reputation for the top processors. I cant belive that the Gvt. would have a lawsuit against AMD.

 

[bernse]

Who said anything about a lawsuit? Where did you get that idea from?

 

[bernse]

I re-read my original post. I gather you got &quot;lawsuit&quot; from MS allegations. That is not what I was trying to infer. I was writing about MS &quot;allegedly&quot; being a monopoly. Nothing about the lawsuit. As well, it would be very naive to assume Intel will be on top permentantly. 1 year ago nobody would have thought they would be playing catch up, did they? Who knows what 2-5 years will bring. If you did, I suggest that you are probably wasting your fortune telling talents on this board and should be employed at an investing house. I am not saying that there is no way in hell they will be on top, just don't assume it.

 

[Finality]

One more thing to worry about is does AMD have a product line that can compete in next gen, and no I'm not talking about sledgehammer. Eventually they will hit a clock speed wall just like Intel has done with there aging ppro line.

Intels next gen Willy?(can't remember its name) is more scalable than the P3. They should be able to hit 4+ Ghz with ease. However from what I understand Williamite is a short term chip about 6 months or so.

 

[Eli]

Hmmm.. So.. Who was right, guys?

Thunderbird 700 - 102$
Thunderbird 750 - 113$
Thunderbird 800 - 130$
Thunderbird 850 - 148$
Thunderbird 900 - 170$
Thunderbird 950 - 232$
Thunderbird 1000 - 266$
Thunderbird 1100 - 356$
Thunderbird 1200 - 488$


Hmmm... Thunderbird 1GHz for 266$, or P3/866 for 299$

Gee, Let me think..

 

[OS]

man, seems like AMD isn't satisfied with merely slapping around intel, but rather they want to crush them. I guess AMD is making up for all those years being pushed around by intel?

 

[Midnight Rambler]

---------------------> Intel AMD %Diff.

Revenue ($bil): $8.7 $1.21 621%
Gross margin: 64% 47% 36%
Op. income ($bil): $2.86 $0.26 987%
Op. margin: 32.7% 21.8% 50%
Adj. net inc. ($bil): $2.8 $0.22 1178%
Net margins: 28.7% 18.5% 55%

Sorry it's a bit hard to read, but I never could get columns correct on this forum.

Anyhow, add to the above $14Billion in cash + $5.9Billion in Equity holdings for Intel vs. &quot;undisclosed&quot; (ie. it's a couple/few hundred million $) for AMD. Also of concern is that AMD is spending little to nothing on R&amp;D and (fab) expansion. Resting on one's laurels is what got Intel off track ...

Digest the above numbers and it's clear (just look at their margins) to see that AMD is bleeding itself to death, instead of the intended target. They may have a nice CPU family right now, but their management is once again totally f@cking it all up. As a shareholder, I'm not too happy with this, and neither is Wall Street, judging from the repeat hammering AMD took yet again today.

 

[Vrangel]

AMD market cap: 6.0 billion
INTC market cap: 257.9 billion

Numbers imply that Intel is 43 times bigger.
(AMD is supposedly worth only 2.3% of INTC.)
Which is pretty ridiculous IMO.

It only means that AMD is a bargain, while INTC is not.