Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
and then we make losses equavalent to our full cost of production
Actually Intel could sell there flash for 1 cent ...easily
Re-marking is devistating for the Brand.
It is a pitty as AMD awareness is starting to spring up in strange places. It is through awareness that AMD will gain added value (higher ASP)
Market Share is not so important. Whar is important is that they are profitable, have good Gross Margins and are winning in the right niche where at best they have little to loose.
sold a bit more intel today ...ooooooh....
I am sure that why Microsoft would love it
I haven’t seen any evidence that Emma is incompatible with success. If we look at the bigger picture (and I am not saying that I have), it might be that producing this chip, and marketing it in the way in which it is being done, adds something to AMD's armoury, at minimal cost.
It will drive ASP's down though, but lets not confuse the metric with the outcome!
Think about the Marketing
Not only do you have the fastest chips in the market,
you also have a company with a humane vison. Your workforce feel like they have a bigger purpose in the world.
"You are seen as the good guys"
Now isn't that just like Apple, worth paying premium for ?
Absolutly correct. This is not the image AMD wants
Intel has the bottom of the market sewn up. They have a big investment in capacity,and AMD should not play in this arena, unless it is excess to their supply-demand.
On the server side you hit the nail on the head, Opteron is erroding Intel Margins, but they are great margins for AMD.... historically speaking.
Intel are unlikely to destroy(yet!) the top end by a price war, because this would destroy them.
Yes, but hell they do have good advertising though. I just saw an ad, this guys dances around a set of ruins with a thin and lite machine holding it as if it were a paperback, doing video conferencing. "They tell a damb good lie"
This branding strategy sounds no different to Duron ! The reason why the do not simply use the name Duron again, is that they wish to to do something different with the pricing ? I kinda like the name Duron though.
I don't think that fuel costs plan any part in AMD's costs build-up. Anthing costsing over £5 weigning less then a couple of gramms could be sent fed-ex
I do agree lets be realistic !
"(Intel favored but folks won't wait
forever and Intel better be competitive)"[i/]
It does look as if Intel is ratcheting up the competition
1. "Intel provides fab tech to Chinese foundry Nanotech" (This sounds like a deal!)
2. Intel have made speed improvements, 3.6GHz Prescott next week, and the Prescott seems to compare 'ok' with an FX53
3. Opteron bug awareness in the public arena! (AMD needs to fix this really quickly)
When Amd drop prices, they are starting to feel the heat(excuse the pun) "Two stores are carrying it for under $600, and this may signal a price drop to combat Intel's release on Monday."[i/]
The posts on UK notebook sales, where not I
This is quite a good idea from AMD, "Dont devalue the Athlon brand image, rather diassociate older technolgy from the brand into a seperate brand"
At what point does AMD stop bouncing back down to $14 ?
They are doing great, we all know this, but they keep bouncing back down to the level they where almost a year ago.
Does three quarters of improved earnings count for nothing ?
32 Bits - This does imply that it will be(In the future) cheaper for AMD to manufacture a 64 Bit processor and hobbel it, then manufacture a 32 Bit one.
I think that the "one core" flexiable manufacturing is a competitive advantage for AMD, in the arena of Manaufacturing, and R&D.
I think typcially comparing fleaxiable maufacturing to batch runs, has indicated that FM has a lower set-up cost per batch, but higher 'per unit cost'.
This is ideally suited to a segmented market where differentiation allows the manufacturer to maintain margin.
Also it is more difficult to make major strategic errors of product choice, but the volume/Low cost market will be elusive.
Intel are turning notebooks into commodities, in the chip area AMD should play/design for the Server Market and anything else is a bonus.
Yes AMD should have additional capacity comming online. But they have lots of headroom on margin for Opteron. So they can use the price/demand curve to lower prices on Opteron, to utilise thier capacity.
And Intel will have a difficult time following them as they will be canbilising thier own server market.
Intel have everything to lose in this market, and AMD gains depend entirely on managing the business for profitabilty.
This means not releasing products simply to demonstrate to the world that you have the fastest.
In the memmory market,AMD aim to offer a better package (Long term customer commitment, Stable pricing(I am sure this is high on customers wish list), Technically good product). This means they are ess succeptable to competition on price. If they feel pricing pressure due to increased market capcity, they have to sell "Value Added and complete package" to their customers as being a differentiator, the reason not to switch.
AMD have everthing to gain !
does anyone know a reason for the poor day ?
Yourbankruptcy,
I beleive that AMD will go up before September and reach parity with Intel.
I think that when you sell your options depends on the exparation and price, and your overall propensity to risk.
I don't trade options, just shares. I know that I could have made some money if I had taken a shorter term view and sold last quarter.
This stock will make a big move soon'ish , I would stay long!
the last sentence should have said I "cannot"
I think that there might be some minimal rational for saying that if a stock gaps that there might be some orders that are left behind and that the market returns to capture this liquidity.(If I understand this correctly)
I can see how this helps identify a trend of direction, unless you are trading very short term.
I agree, I think that a summer rally will be the period in which AMD makes most of it's upwards movement, like it did in 2000 and 2001.
Henry Richards
As I said before, I don't think the man knows. But we will have to wait and see !
Better then seasonal Q1 Revenue
Silicon strategies has a article three days ago which predicts the following
"Our macro outlook calls for (around) 30 percent y/y revenue growth in 2004, followed by (around) 20% y/y growth in 2005," he said. "Our model is predicated on better-than-seasonal revenues for 1Q04: we are looking for up 2.5 percent q/q from 4Q, which will be modulated by Intel's weakness but also helped by strength from the likes of Texas Instruments and Taiwan Semiconductor," he said.
http://www.siliconstrategies.com/markets/showArticle.jhtml?articleId=18400797&kc=4926
These numbers might be overstated a bit !! Before I get flamed, but I do that the point is valid.
Still that's $50M revenue ! AMD only need 10% of the server market in total to make +- $500M additional revenue, with low marginal costs and a fixed overhead base.
It also depends on the opteron offering. The Server buyer is more educated and therefore more rational then the consumer.The price/performance and heat will count for a lot and if other companies take away business from Dell, they will adopt Opteron.
If AMD reduces the price enough, and they have the scope due to the low marginal cost, Dell will adopt opteron.
Insider trading
If he does actually know anything about the next set of results, which as I said before, I doubt, this would be insider trading ?
AMD is driving the pricing in the server market segment.
It seems to me that AMD is the company that pricing in line with it's production capacity. (Intel is following AMD price reductions)
Intel has a hard time reducing pricing in the server segement becuase every time they reduce their prices they lose profits.
These profits are need by Intel to cover their large overhead.
AMD have no profits to loose in this segement of the market, as long as the employ price elasticy of demand models to their pricing.
Given the current state of their technical lead and the better ASP's, the best strategy they can follow is to make this their main market.
Opeteron is the key to winning for AMD.
I Donb't think that a sales person can predict revenue and profits a couple of weeks before the period end.
Even the finance people will not have a handle on the numbers yet.
Yes, maybe you are right. I still think what they are trying to do is set-up their marketing stuctures for a more features based approach. This is what they are saying at least. I don't think they have a killer feature that they can add in three months, but they do have the marketing muscle to convince the average consumer that their product has some sort of feature(whatever that might be)
This might not effect the high end where speed and power consumption and heat are going to be criterion for opteron and FX and top-end 64, becuase the buyer is more educated.
Anyway as I have said before AMD really need to focus on this top-end.
Keithdust2000, AMD might be able to capitalise on this for three months, but what then ? If (and this is an if)Intel can outmarket AMD by changing the customers buying criterion from speed and power to whatever gizmoname or device they can intergrate, then AMD losses. This is because they cannot, due to lack of capital, match the breadth of Intel research and investment.
We will have to wait and see !
I am not so sure this is an advantage for AMD. AMD seemed to finally be making ground against intels old marketing strategy. Intel is trying to change the focus of the customer becuase they are starting to loose on speed.
This does not affect AMD, right ?
I think I should clarify,
yes AMD need to be able to manufacture higher speeds of processors, by they also need to time their launches of these new products to maximise their revenue. As thier R&D costs are sunk, they need to effectively manage the balance of investment and return on investment.
I think it has been stated on this board many times, in the past AMDs marketing has been poor.
A technically superior product does not always win in the market place an example of this is windows !
AMD needs a Bill Gates. I am hopeing that Hector is AMD's Bill.
As far as I can see they should launch the FX55(as an example) only when the demand drops off for the FX53 at $750 per chip, or if they have the possabilty of charging $850 for this chip.
It would potentially be silly to beat Intel for 6 months, only to find that Intel changes the goal post by scrapping a generation of processor(which they can afford to do) and leapfrogs to the next generation.
I believe AMD currently have a technological lead, they only win if they convert this into profits.
But I do understand that this is a more technical board, so I will try and keep the thread of conversation on technical issues in the future.
In answer to mu own question from overclockers
http://www.overclockers.com/articles978/
3GHz is certainly nothing to sneeze at when you realize that conservatively, that translates out to better than a 4.5-4.8GHz Intel Prescott. Intel won't reach those kinds of speeds until they get to Tejas.
Does anyone have any idea's about the likely speed grades bump that K8 will get from their transition to 90nm ?
This board is very interesting for me and AMD investors.
People on this board (Like dougsf30) have a good technical knowledge of the products/process and industry.
There is good debate and I learn a lot from this board, especially about the state of AMD Technolgy vs. Intel Technolgy.
(Excuse the smooze)