Advanced Micro Devices Inc (AMD)

[kpf]

buggi

whether this is HIGH Demand from the OEM's or bad supply
(bins) from AMD?

I believe it is neither of these. Rather the same kind of "supply management" Intel does to make sure milking out every dollar of its Centrino-cashcow. AMD needs to make look its premium products tight in retail to take care of prices. And OEMs want to see these high prices in the channel show window to make their systems look priceworthy.

Economic reasoning goes along this line: Real shortages move prices. You'd see dealers offer FX- and other highend models hundred dollars higher if there was, and another hundred if shortage persists. Managed tightness is to control prices. Which is what I see. As soon as you look at it from this viewpoint, you don't suffer anymore from the idea AMD would miss any cream because they can't make enough high end chips.

Actually, AMDs problem in this respect is in the dimension that it takes a lot (of time and effort) to get its traditional clientele used to the idea of shelling out a small fortune for a CPU instead of paying half the Intel-price for the same performance. Intels clientele is used to it, but it is not easy to convert these to AMD. Now this would usually lead into one of the comments about it's about time for AMD to tweak its marketing process. I am explicitely abstaining from this currently due to these concerns:

The fact AMD does not intend to waterfall its prices in summer as per reseller emails carries the message AMD believes the current equilibrium in this respect needs currently no action. Insofar, the question you raised should probably be reworded as "Strong demand or poor supply (in volume, not bins!).

K.