Originally posted by: cmdrdredd
Originally posted by: Idontcare
Originally posted by: cmdrdredd
Originally posted by: Idontcare
Originally posted by: cmdrdredd
Originally posted by: Idontcare
Don't discount the fact that initial volume of Phenom II will be low as AMD will still be in the early stages of ramping 45nm production.
So while the initial Phenom II prices may place it at a non-competitive price/performance ratio relative to Yorkfield or Bloomfield, the fact that the Phenom II supply will be less than infinite could very well mean that AMD will still sell all the Phenom II's they can push out the door at those prices until their volume ramps thru Q1 and into Q2.
Supply curve shifts
Maybe, but those who know hardware and read sites like these will say "hey that Phenom costs $xx more than that Q9550 over there. It's not even faster in my games and current apps. I can save some cash and then buy the new WoW expansion or a better video card...sweet!"
or something to that effect.
That is the part of supply vs demand wherein the demand is reduced such that it is no longer outstripping the supply.
Which I'm saying will lose potential buyers.
What were those potential buyers going to buy?
If there are only 3 chips then it doesn't matter whether the price is so low that there are 20 potential buyers or if the price is high and there are only 10 potential buyers...because in a supply limited situation there will only be 3 buyers of those 3 CPU's.
Lowering price only helps increase actual buyers if supply exists for potential buyers to become actual buyers.
In the absence of supply there really is no point in attracting potential buyers who can't get anything (at any price) once the initial stock is depleted.
If nobody will buy it when it's expensive because it performs the same as cheaper options and people go for cheaper options, they won't sell CPUs. That's too hard to figure out?
I think you just confirmed for me that you don't understand some of the basic tenants of supply/demand economics.
Demand is not a step-function based on price, it is a continuously varying function. AMD isn't going to find themselves in a situation where they price their chip $1 too high and suddenly have zero customers.
At any rate I refuse to beat my head against this wall, I've learned what I needed to here.