AMD strictly moderated (AMD)

[oc detective]

Morgan Stanley's (analyst report 28th Feb.) estimate for Q4 2005 was that AMD mpus had an ASP of just over $90 compared to just under $150 for Intel. Obviously this increased (for AMD) during Q1 of 2006 however I wouldnt expect it to be much higher than $100.

Quote from report.

"We estimate that AMD’s MPU ASP was just over $90 in the fourth quarter, and this compares with our estimate that Intel’s ASP was just under $150. We believe that approximately 1/3 of this difference is explained by legacy issues that have caused AMD’s ASP for the same SKU to be 10%-15% lower than Intel’s. However, we believe that 2/3 of the difference is explained by mix. Provided AMD executes, its long-term product mix should look a lot more like Intel’s, which suggests that long-term ASPs between the two companies should converge over time."