Advanced Micro Devices Inc (AMD)

[dougSF30]

chipguy, the claim is slightly higher ASPs across the whole line of microprocessors. The justification given is "primarily due to a richer mix within server processors".

Assuming you accept the reason as primarily true, what does that mean? richer MIX, not "higher prices". Prices across the server line could be falling significantly, but Intel could sell slightly more high-end server chips, and just barely more than make up for the overall drop in server part prices.

In fact, that fits with slashed server chip prices. Customers can now afford the top end, since Intel can no longer price it astronomically high, thanks to Opteron.

Does that help you?

Also, be wary of where the discounts impact the earnings statement. If Intel sets up special "marketing funds" for various cpus (Itanic springs to mind), and that fund refunds a customer 80% of the cpu cost, how does Intel recognize that exchange? You never know what clever accounting can hide.

Doug