Intel Corp (INTC)

[chipguy]

So Intel is building inventory of bottom SKU Celerons as
insurance against delays in Conroe? I can't believe you
are really claiming something as stupid as this.

Intel is building parts that can be fused into anything Intel desires (within the part's capabilities), including $37.99 Celeron.

Then why are you harping on your $38 Celeron strawman?

IMO all P4 SKUs are much less desirable than Conroe so
if Intel wants to clear its P4 risk build inventory and do the
maximum damage to AMD's bottom line at the same time
it will basically config every last device to its full potential
and price the whole shebang to move quickly.

When the smoke clears Intel has its shiny new NGMA line
to bring ASPs back to decent levels.

OTOH AMD has the choice of

1) pricing its K8 products downwards to keep selling during
the P4 blow out. Unfortunately those prices would be more
or less stuck there at least until K8L.
2) Hold out on price and watch desktop unit and dollar
sales drop precipitously. Unfortunately high priced K8 vs
Conroe then means the loss is more or less permanent
at least until K8L.

No wonder AMD camp followers are walking around with
bricks in their shorts these days.