![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Thursday, October 02, 2003 1:09:36 AM
1. Your market share is low. Many marketing tools are not available and your larger competitor can lower prices only in the markets that you compete in and raise them in other markets
2. Your competitor occasionally (most of 2001 and 2002) has superior products
3. Your competitor has superior marketing
As for wbmw's objection that marketing isn't part of the cost of the CPU, true enough. But it is part of the cost of doing business Intel's way.
The numbers show that AMD would need an ASP of $83.50 to break even instead of have a 140M loss.
If Intel had an ASP of $83.50, its revenue would go down by 30M CPUs * ($174 - $83.50) Sales/CPU, or $2,715M.
Intel had an IAG profit of $1,843M. That leaves a net loss of $872M.
OK, Intel had total marketing, general and administrative costs of $1,079 last quarter.
Do you really think more than 872M of that is marketing? I think not, especially since some of that marketing goes towards product lines other than CPUs.
So, if Intel didn't spend one penny on marketing, it would still have a loss selling CPUs for the same price at which AMD would be breakeven.
So, even if you make the following magical assumptions
1. Intel stops losing money on all of its non-CPU businesses, that had combined losses of $569M in Q2.
2. Intel cuts its CPU marketing budget to zero
...even with these assumptions, Intel would lose money selling CPUs for $83.50 while AMD would be breakeven.
Petz
Recent AMD News
- Costco Hikes Membership Fees; ON Semiconductor Stock Drops 3%; WD-40 Soars 13% on Strong Q3 Earnings • IH Market News • 07/11/2024 10:17:26 AM
- AMD to Acquire Silo AI to Expand Enterprise AI Solutions Globally • GlobeNewswire Inc. • 07/10/2024 01:05:00 PM
- U.S. Stock Futures Rise Amid Focus on Fed Chairman Powell’s Speech, Oil Prices Fall • IH Market News • 07/09/2024 10:56:09 AM
- U.S. Stocks Close On Mixed Note; Nasdaq, S&P Hit Record Closing Highs • IH Market News • 07/08/2024 08:48:15 PM
- U.S. Index Futures Modestly Higher Before Key Economic Data Release; Early Closure for July 4th Holiday • IH Market News • 07/03/2024 11:01:33 AM
- Major Averages Close On Firm Note As Stocks Rally After Early Struggle • IH Market News • 07/02/2024 08:44:00 PM
- Honeywell Acquires CAES Systems for $1.9 Billion, Sarepta Therapeutics Surges 34%, Gilead Continues Gains • IH Market News • 06/21/2024 12:00:38 PM
- Trump Media Resells Stocks and Warrants; KB Home Exceeds Q2 Expectations, and More News • IH Market News • 06/20/2024 10:55:11 AM
- AMD to Power AI-Based Smart Parking Solution for Sun Singapore, the Country’s Largest Provider of Smart Parking Services • GlobeNewswire Inc. • 06/19/2024 01:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 08:18:09 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 08:12:29 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/14/2024 08:03:45 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 08:14:12 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:34:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/11/2024 09:40:41 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/10/2024 09:22:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:16:19 PM
- AMD to Present at the UBS Women in Tech Summit • GlobeNewswire Inc. • 06/10/2024 01:15:00 PM
- Apple Showcases AI at WWDC 2024, Nvidia Stock Split Starts Today, and More News • IH Market News • 06/10/2024 11:29:44 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 08:16:25 PM
- AMD to Present at the Nasdaq London Investor Conference • GlobeNewswire Inc. • 06/06/2024 08:15:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/06/2024 08:11:40 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/05/2024 08:27:23 PM
- Economic Worries May Lead To Weakness On Wall Street • IH Market News • 06/04/2024 01:10:54 PM
- AMD Unveils Next-Gen “Zen 5” Ryzen Processors to Power Advanced AI Experiences • GlobeNewswire Inc. • 06/03/2024 03:01:00 AM
Cannabix Technologies and Omega Laboratories Inc. Provide Positive Developments on Marijuana Breathalyzer Testing • BLO • Jul 11, 2024 8:21 AM
ECGI Holdings Enhances Board with Artificial Intelligence (AI) Expert Ahead of Allon Apparel Launch • ECGI • Jul 10, 2024 8:30 AM
Avant Technologies to Meet Unmet Needs in AI Industry While Addressing Sustainability Concerns • AVAI • Jul 10, 2024 8:00 AM
Panther Minerals Inc. Launches Investor Connect AI Chatbot for Enhanced Investor Engagement and Lead Generation • PURR • Jul 9, 2024 9:00 AM
Glidelogic Corp. Becomes TikTok Shop Partner, Opening a New Chapter in E-commerce Services • GDLG • Jul 5, 2024 7:09 AM
Freedom Holdings Corporate Update; Announces Management Has Signed Letter of Intent • FHLD • Jul 3, 2024 9:00 AM