Advanced Micro Devices Inc (AMD)

[dhellman]

Has "Volume is our vacine" been replaced by "Pricing is our pride"?
Sounds like Hector has turned down the volume to produce higher asp.

AMD is doing a much better job of managing its processor pricing and channel sales than in the past, said Dean McCarron, principal analyst with Mercury Research. The company used to discount its processors steeply to sell more of them, but it is now holding firm on its prices.

"The parts are being priced appropriately rather than being priced to move," McCarron said.

per your link: http://www.computerweekly.com/articles/article.asp?liArticleID=127754&liArticleTypeID=20&liC...

explains this comment in the CC:

Hector De Ruiz - Advanced Micro Devices - President, CEO, Director
Let me just talk about our capability in general terms, Mark. We currently are running our factory as a mix of 130-nanometer both Athlon XP and next-generation hammer product. We -- if I -- at the risk of sounding somewhat simplistic here, it's kind of like a knob that we're dialing, and as to how much of that we want to be Athlon XP and how much we want to be Hammer or Reented. We're basing the market with our customer very carefully as to what they want and need and planning this result from the beginning because we anticipate the beginning of the 90-nanometer conversion to really give us a big boost in our capability for particularly the K-8 hammer architecture, but even at the 130-nanometer I want to make sure it's clear that today, we have the capability of doing if we wanted to, more than a million a quarter, well more than a million a quarter. Significantly more than a million a quarter, so we're throttling that based on our plans, which are, you know, how to penetrate particular customer segments and accounts and the expectation in the second half of the year, other things will occur relative to software, where we will then be at 90-nanometers and be able to execute a little more leisurely how many units we can produce.


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