Advanced Micro Devices Inc (AMD)

[jhalada]

wbmw,

So has Intel substantially changed their product mix? Yes, actually, they have. And it's been in the positive direction with a strong Core 2 ramp, and new quad core skus introduced towards the end of the quarter at higher price points. If anything, that ought to give an ASP lift for the quarter.

These are certainly hopeful signs for ASPs to be at least steady, OEM discounting can skew things. With AMD giving discounts and growing units (we will see who grew units faster) I don't think Intel just stood by and not matched some of AMD pricing. Even if Core 2 was not discounted, there is still a substantial non - Core 2 volume.

Up until now, I would have been unsure about AMD's product mix. I was half expecting them to do alright, given large discounts, but strong demand for dual core. Obviously, the mix wasn't good at all, and the discounts dragged ASPs down heavily. For them to crow about substantial increases in unit sales, and yet still only grow 3% in revenues, their ASPs must have tanked.

Yup. Big time. Which is why I wonder if strong unit growth and substantial discounting left Intel unaffected.

Q4 06 and onward in 2007 could be another round of price declines like that of Q1 to Q2 06 with the roles reversed. AMD behind, fighting for unit market with low pricing just like Intel was in Q1 and onward in 2006.

Joe