Advanced Micro Devices Inc (AMD)

[Tiger64]

Yes...but...what if the cost structure is not that advantageous at 65nm and AMD can produce a boatload of processors at 90nm that is competitive with intel at 65nm...unless the transition is smoother and IBM is really helping AMD out what is the true cost savings if the market can only absorb 50 million processors per quarter...aren't we really dealing with other economic issues...isn't the market more inelastic in the sense that no more processors will be demanded unless there was a way for intel
and AMD to sell processors at $50...so processors drop in cost from $20 to $15 to manufacture at 65nm for intel...but AMD can produce a competitive product at 90nm for $20 and everyone is selling at $90 ASP...what do you think? I think a market that can absorb 200-250 million processors per year is the maximum...AMD and Intel would only be passing savings onto the computer manufacturers...