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Saturday, December 16, 2006 3:03:59 PM
With all this discounting, what will be the affect on AMD's ASPs?
Assuming the reason for the discounts is volume not taken by Dell and further assuming Dells rebates are higher than what you see in etail, the effect is rather up than down for this Q.
Going forward, it's probably just an anticipation of the price-round which traditionally happens in early January. Henri has demonstrated tight grip on channel prices since years. I don't think he would allow discounts to become visible beyond planned price-cuts in the very near future. I've neither seen him flooding channels by q end nor floods from OEMs to the retail for long. AMDs "asian affairs" seem to be resolved as well.
Otoh, most of the volume Dell didn't take went to China, from what I hear. And these chaps don't pay much either. Maybe even a tad less than Dell pays for volume they don't need desperately.
Hard to say what the overall effect for the Quarter is. I don't change anything.
K.
Facts are irrelevant to the emotional brain
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